xper lysis Re nas information about three companies you are currently evaluating: Company Degree of Degree of Operating Financial Leverage Leverage (DOL) (DFL) Acme 1.5x 6.0x following
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kindly answer letter B manually
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- What is the risk profile of those company? (How much overall risk is there inthis firm? Where is this risk coming from (market, firm, industry or currency)?How is the risk profile changing? The company is1) Berjaya Corporation Berhad 2) BSL Corporation BerhadAccounting QuestionUsing the data in the following table for a number of firms in the same industry, dothe following:•a. Compute the total asset turnover, the net profit margin, the equity multiplier, andthe return on equity for each firm.b. Evaluate each firm’s performance by comparing the firms with one another.Which firm or firms appear to be having problems? What corrective actionwould you suggest the poorer performing firms take? Finally, what additional data would you want to have on hand when conducting youranalyses?Firm (in million Dollars A B C D Sales $20 $10 $15 $25 Net Income after sales 3 0.5 2.25 3 Total Assets 15 7.5 15 24 Stockholders’ Equity 10 5 14 10
- Multiple Choice Questions 1. The following are the factors to be considered in Suitability, except A. Environment B. Capabilities C. Expectations D. Scenarios 2. The ____________ for a firm is the internal rate of return on existing investments, based on real cash flows. A. cash flow return on investment (CFROI) B. Economic Value Added (EVA) C. Total Shareholders Return D. Return on Investment 3. The elements that must be considered in using EVA are as follows, except ___________. A. Reasonableness of earnings B. Appropriate cost of Capital C. Volatility of the market D. None of the aboveThe data in Exhibit 11.3 on industry median betas suggest that firms in the following three sets of related industries have different degrees of systematic risk. REQUIRED a. For each matched pair of industries, describe factors that characterize a typical firms business model in each industry. Describe how such factors would contribute to differences in systematic risk. b. For each matched pair of industries, use the CAPM to compute the required rate of return on equity capital for the median firm in each industry. Assume that the risk-free rate of return is 4.0% and the market risk premium is 5.0%. c. For each matched pair of industries, compute the present value of a stream of 1 dividends for the median firm in each industry. Use the perpetuity-with-growth model and assume 3.0% long-run growth for each industry. What effect does the difference in systematic risk across industries have on the per-dollar dividend valuation of the median firm in each industry?3 Choose a public-listed company that applies Balanced Scorecards (BSC) as a form of performance evaluation system. Critically evaluate its financial (specifically, 4 selected items from the stock investment analysis) and non-financial performance of the latest one-year period based on FOUR (4) perspectives of BSC. (Hint: use your personal but rational judgement to determine possible Key Performance Index (KPI) of this company before performance the BSC analysis). Edit View Insert Format Tools Table 良
- Which of the followings is the LEAST considered when developing financial strategiesa.Risk of industry-comparable employee turnoverb. Relationships with business partnersc. Current and forecasted financial positiond. Need for long-term financing of potential projects and current operationswhich is the best description of top-down security analysis? A-starts with the fundamental analysis of a firm B-includes economic, industry, and fundamental analysis C-concentrates on the competency of the senior management of a firm D-centers on the past performance of a firmWhen doing a time-series comparison, an analyst would do which of the following?Select one:a. Hold firm-specific factors constant and examine the firm’s strategy over time.b. Examine firm-specific factors over time and hold the firm’s strategy constant.c. Examine the performance of a firm in its industry and hold industry-level factors constant.d. All of given choices.
- Answer the following question in essay. What do you understand by current ratio? What are it uses? What are its limitations? Ratio analysis is widely used as a tool of financial analysis, yet it suffers from various limitations. Explain. How can solvency of a firm be measured? What you understand by Liquidity ratios? Discuss their significance. Page 1 Module PSFM08 MANAGERIAL ACOUNTING WITH FINANCIAL ANALYSIS AND REPORTING Explain the importance of profitability ratio. How they are worked out?What is WACC (select all that are true)? Group of answer choices Rd (1-Tc) * D/V + Re * E/V Weighted Average Cost of Capital For a firm overall, it is based on the riskiness of the firm's assets While it is generally estimated by looking at the right-hand-side of the balance sheet, it is largely driven by the left-hand-side (i.e., assets) It is the amount that equity holders demand for an investment in a firm It is the amount that debt holders demand for a loan made to the firmFinancial analysts have developed two performance measures: Market Value Added (MVA) and Economic Value Added (EVA). Discuss and explain both. Which is a better representative of the firm’s performance, and why?
