Answer:
The correct answer is letter "A": True.
Explanation:
The Internal Service Revenue (<em>IRS</em>) offers Volunteer Income Tax Assistance (<em>VITA</em>) for elderly people who do not know how to file taxes on their own. The volunteers follow a series of practices during the interview with the taxpayers to gather their taxable information accurately. The principle of Due Diligence allows volunteers to <em>ask for clarification when the taxpayer information seems unclear or inconsistent</em>. However, if the information is not unusual, there is no need to request proof of it.
Investors and financial analysts wanting to evaluate the operating efficiency of a firm's managers would primarily look at the firm's asset utilization ratios.
Economic analysts work in banks, pension funds, coverage businesses, and different companies. Monetary analysts manual corporations and people in choices about expending cash to attain an income. They assess the performance of shares, bonds, and different varieties of investments.
Irrespective of training, a successful profession as an economic analyst requires sturdy quantitative abilities, professional hassle-solving competencies, adeptness in the use of common sense, and above-common communique skills.
Maximum financial analysts report excessive-pressure levels and heavy workloads. The work itself is complicated and calls for quite a few understanding and continuous examination. Even as monetary analysts are usually paid properly, it comes at the value of a wholesome work-life balance in many cases.
Learn more about financial analysts here: brainly.com/question/8344696
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Complete Question:
The net present value of future growth opportunities (NPVGO)will contribute to an above average P/E multiple when the additional share value created is
A) positive and the return on new investment is lower than the cost of equity capital.
B) positive and the return on new investment is greater than the cost of equity capital.
C) negative and the return on new investment is lower than the cost of equity capital.
D) negative and the return on new investment is greater than the cost of equity capital.
Answer:
The net present value of future growth opportunities (NPVGO)will contribute to an above average P/E multiple when the additional share value created is
B) positive and the return on new investment is greater than the cost of equity capital.
Explanation:
A firm can determine the net present value of growth opportunities (NPVGO) by calculating the net present value of all future cash flows involving projects with growth opportunities. The NPVGO provides an alternative way of thinking about stock valuations and can be determined by comparing the return on investment with the investment cost. The NPVGO determines the per-share value of these growth opportunity projects in order to ascertain the firm's actual value.
