Homework Answers
Comaparation Valuation of price multiples is used to compare between two or more firms of more or less homogeneous nature.It means that if the firms are of same nature and kind they can act as a basis for comparison. The price multiples can not work effectively if the firms are non- homogeneous in nature taht is they have different size, products and growth as they are sensitive to the inputs. Also, a delay in the multiples is an indicator of the past.
Therefore, The disadvantages of this method is its non workablity with different kinds of firms and that lagging it reflects the past.
So the correct answer is OPTION C- Price multiples will be very sensitive to the inputs, especially the k-g denominator.
Add Answer to:
> Question 30 1 pts All of the following statements are disadvantages of comparable valuation using...
1. Which of the following statements is most likely to be correct about price multiples based...
1. Which of the following statements is most likely to be correct about price multiples based on fundamentals? A. Price multiples are sensitive to the inputs. B. A stock may be overvalued using the price multiple method but undervalued using the discounted cash flow models. C. Price multiples are most reliable when the firm has assets with ready market values. 2. A firm has a required rate of return that is higher than its ROE. Assuming all other factors remain...
Question 2 10 pts With regard to a residence, all of the following are disadvantages of...
Question 2 10 pts With regard to a residence, all of the following are disadvantages of renting except for: no special tax deductions no potential gains for rising value of property potential financial loss changes usually cannot be made there are restrictions on various things such as pet ownership
QUESTION 30 Reconstitution is describe accurately in all the following statements except: a. Reconstitutions are made to...
QUESTION 30 Reconstitution is describe accurately in all the following statements except: a. Reconstitutions are made to reflect changes such as mergers, acquisitions and the like. b. Reconstitutions are made to ensure that the weights assigned to each security is maintained. c. Reconstitutions are made to reflect changes in the choices of securities by the overseeing management of the index.
Question 2 10 pts With regard to a residence, all of the following are disadvantages of...
Question 2 10 pts With regard to a residence, all of the following are disadvantages of renting except for: Ono special tax deductions O potential loss of property value landlord may raise the rent changes usually cannot be made there are restrictions on various things such as pet ownership
Question 2 10 pts With regard to a residence, all of the following are disadvantages of...
Question 2 10 pts With regard to a residence, all of the following are disadvantages of renting except for: O no special tax deductions Ono potential gains for rising value of property landlord may raise the rent O may have to pay property taxes Othere are restrictions on various things such as pet ownership
Question 4 10 pts With regard to a residence, all of the following are disadvantages of...
Question 4 10 pts With regard to a residence, all of the following are disadvantages of owning except for: a substantial down payment is needed a house requires a big commitment in time and money a house may decrease in value if the neighborhood deteriorates or changes quickly you have to pay state and federal property taxes O property taxes and insurance can increase and take too much of the budget
O All of the above. D | Question 3 1 pts Which of the following statements...
O All of the above. D | Question 3 1 pts Which of the following statements is a true statement? O Both U.S. GAAP and IFRS do not require separate disclosure of items in the Income Statement. O The closing process is very different for U.S. GAAP and IFRS. O None of the above. O All of the above. OIFRS permits expenses to be presented by their function or their nature. U.S. GAAP provides no direction but the SEC requires...
Question 13 1 pts A free market is described by which of the following statements? Inputs...
Question 13 1 pts A free market is described by which of the following statements? Inputs are free to sellers. The government does not set or influence market prices in any way. The price of outputs is controlled by the government. O Decisions are centralized Previous Next >
FNB 100-Professor Early ASSIGNMENT Valuation of Equity Prices Question #1. How can the analysis of risk...
FNB 100-Professor Early ASSIGNMENT Valuation of Equity Prices Question #1. How can the analysis of risk be integrated into the valuation of common stock? What should happen to the value of common stock if its beta increases? Problem #1. What should be the price of the following preferred stock it comparable securities yield 7. a) Preferred stock A is estimated to pay an $8.00 dividend. b) Preferred stock B is estimated to pay an $8.00 а» dividend but will be...
. QUESTION 4: (a) For each of the statements below, write T (True) or F (False)...
. QUESTION 4: (a) For each of the statements below, write T (True) or F (False) in the answer booklet next to the question number. For the statement which you believe is false, provide reasons why. (1) A firm has positive residual operating income (ROPI) in period t when its forecasted NOPAT in period t exceeds the expected amount computed as net operating assets at the start of period t multiplied by the cost of equity capital. (ii) In a...
Question 2 10 pts With regard to a residence, all of the following are disadvantages of renting except for: no special tax deductions no potential gains for rising value of property potential financial loss changes usually cannot be made there are restrictions on various things such as pet ownership
Question 2 10 pts With regard to a residence, all of the following are disadvantages of renting except for: Ono special tax deductions O potential loss of property value landlord may raise the rent changes usually cannot be made there are restrictions on various things such as pet ownership
Question 2 10 pts With regard to a residence, all of the following are disadvantages of renting except for: O no special tax deductions Ono potential gains for rising value of property landlord may raise the rent O may have to pay property taxes Othere are restrictions on various things such as pet ownership
Question 4 10 pts With regard to a residence, all of the following are disadvantages of owning except for: a substantial down payment is needed a house requires a big commitment in time and money a house may decrease in value if the neighborhood deteriorates or changes quickly you have to pay state and federal property taxes O property taxes and insurance can increase and take too much of the budget
O All of the above. D | Question 3 1 pts Which of the following statements is a true statement? O Both U.S. GAAP and IFRS do not require separate disclosure of items in the Income Statement. O The closing process is very different for U.S. GAAP and IFRS. O None of the above. O All of the above. OIFRS permits expenses to be presented by their function or their nature. U.S. GAAP provides no direction but the SEC requires...
Question 13 1 pts A free market is described by which of the following statements? Inputs are free to sellers. The government does not set or influence market prices in any way. The price of outputs is controlled by the government. O Decisions are centralized Previous Next >
FNB 100-Professor Early ASSIGNMENT Valuation of Equity Prices Question #1. How can the analysis of risk be integrated into the valuation of common stock? What should happen to the value of common stock if its beta increases? Problem #1. What should be the price of the following preferred stock it comparable securities yield 7. a) Preferred stock A is estimated to pay an $8.00 dividend. b) Preferred stock B is estimated to pay an $8.00 а» dividend but will be...
. QUESTION 4: (a) For each of the statements below, write T (True) or F (False) in the answer booklet next to the question number. For the statement which you believe is false, provide reasons why. (1) A firm has positive residual operating income (ROPI) in period t when its forecasted NOPAT in period t exceeds the expected amount computed as net operating assets at the start of period t multiplied by the cost of equity capital. (ii) In a...
Most questions answered within 3 hours.
-
Which of the following is correct?
A. APC + MPS = 1
B. APS + MPS...
asked 10 minutes ago -
Given a regression sum of squares equal to 2373.59 and a total
sum of squares equal...
asked 1 hour ago -
Compare and contrast the linear motion and angular motion
equations F ma and . That is,...
asked 57 minutes ago -
Now that this course has taken you on a journey of introduction
to the world of...
asked 1 hour ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 3 hours ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 3 hours ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 5 hours ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 4 hours ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 4 hours ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 5 hours ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 5 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 5 hours ago