2) What do you mean by ratio analysis? What are the advantages of such analysis? Also point out the limitations of ratio analysis.

Q: What limitations do ratio analysis have?

A: Ratio Analysis: It is a technique used in the financial analysis field. Ratio analysis helps to use…

Q: How is the the financial ratio analyses very useful?

A: Ratio analysis is a method of relative measure between two numericals for gaining knowledge about a…

Q: is the intuition behind multiples or comparables valuation? What are the advantages of this m

A: Multiple method is very common method of valuation of stock in market.

Q: How would you use financial statement analysis?         Is there one ratio that you feel is more…

A: Financial statements give ideas about performance of company within accounting period.We can compare…

Q: Discuss any two limitations of  Ratio analysis.

A: Limitations of ratio analysis:Ratios are mostly computed based on historical costs as a result;…

Q: What is the put-call ratio? What is it used for? What are considered high and low values and what do…

A: The question is based on the concept for indicators of the stock market performance. The Put-Call…

Q: Explain any  TWO (2) advantages of ratio analysis

A: Analyzing the figures that are recorded in the financial statement in such a manner that helps to…

Q: Discuss and explain the difference between

A: Parameters of Comparison Horizontal Analysis Vertical Analysis Definition It takes into…

Q: What is the Incremental PI Ratio Analysis for Mutually Exclusive Alternatives?

A: The profitability index (PI), then again alluded to as the value investment ratio (VIR) or profit…

Q: What assumptions and limitations does multiples valuation have?

A: Multiple valuation or relative valuation is a market based valuation method where the target company…

Q: What are the advantages and limitations of ratio analysis? Identify three advantage and three…

A: Ratio Analysis is the use of accounting ratios to forecast or review the financial performance of a…

Q: The limitations of ratio analysis as a tool for strategic decision making

A: It is frequently required to compare the performance of a company or multiple organisations across…

Q: List several potential difficulties with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: Why do most of the engineers prefer Rate of Return Analysis to the PW method?

A: Answer: They would be calculating the present worth of cash flows using a net present value…

Q: State why payback analysis should be used only as a supplemental analysis tool when an economic…

A: Payback analysis is the method for calculating payback period of an investment. Payback period is…

Q: Why do conflicts sometimes arise between the netpresent value (NPV) and internal rate of return(IRR)…

A: The basic assumption between NPV and IRR method is the cash flows are reinvested. In the NPV method,…

Q: Which of the following should not be included as an application of the rate of return concept? rate…

A: As per the guidelines, only one question is allowed to be answered so, I am answering question no.…

Q: "Ratio analysis reveals hidden facts" - Comment on this statement highlighting the merits and…

A: SOLUTION RATIO ANALYSIS IS THE QUANTITATIVE ANALYSIS OF DATA ENCLOSED IN AN ENTERPRISE'S FINANCIAL…

Q: 1. What causes volatility? Explain the basic assumption and research supported view.

A: Volatility is price variability of an asset. Risky assets' prices go up and down and that is called…

Q: The Peg Ratio appears to be a refinement that allows us to do what? Is the ratio aptly named?…

A: The price earnings ratio of the PE ratio is one of the most common measure to value the stocks of…

Q: What is the intuition behind multiples or comparables valuation? What are the advantages of this…

A: Answer : What is the intuition behind multiples or comparable valuation? The intuition behind…

Q: Discuss the advantages and limitations of Ratio Analysis.

A: Ratio analysis is the process of determining and interpreting numerical relationships based on…

Q: What alternatives are available to Wilkinson and Walker to deal with this situation, and what are…

A: Introduction: When a person or organization becomes insolvent, it is unable to meet its financial…

Q: Conclusion: Based on your findings on ratio analysis and interpretation, what conclusion can you…

A: Accounting ratios are the mathematical expressions between two figures taken for comparison. When…

Q: List several potential problems with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: Is a negative Sharpe ratio good or bad?  EXPLAIN

A: What sharpe ratio measure? It measure the excess return earn by portfolio over risk free rate at…

Q: How to incease profitability if PE Ratio, EPS Ratio, and ROE cannot be calculated because of its…

A: Accounting refers to the process of recording, summarizing, interpretation and communicating the…

Q: What is the difference between YTD and YoY return? Provide an example

A: In the question they have asked regarding YTD and YOY differences between them so they will be…

Q: payback period, NPV, and IRR always lead to the same decision? Why or why not? If not, which one…

A: Step 1   One of the most essential choices a business owner or management will ever make is capital…

Q: Beside the dollar cost, what other costs should you consider when comparing alternative solutions to…

A: There could be lot of factors which are to be considered while comparing alternative solutions to a…

Q: What is the major disadvantage of the high-low method?

A: High-low method: High-low method is a method of calculating the variable cost and the fixed cost of…

Q: 5) Is the cost method of valuation always reliable? What can be done to make the valuations…

A: The cost approach is one of the methods of real estate valuation by which the price a buyer should…

Q: Usually, which outweighs the other in decentralization—advantages or disadvantages?

A:

Q: main limitations of ratio analysis

A: Ratio analysis is the way to assess the financial status of an entity based on certain accounting…

Q: what are the limitations of the Comparative advantage theory?

A: Solution- Comparative Advantage Theory-          The term comparative advantage is most frequently…

Q: Explain two (2) disadvantages associated with the use ratio analysis.

A: Introduction Ratio Analysis is the management accounting tool used to ascertain liquidity, solvency,…

Q: What do we mean by a lump-sum Problem?

A: A lump-sum payment is a substantial amount of money paid all at once as opposed to in installments.…

Q: Explain the limitations of ratio analysis

A: Limitations of ratio analysis:Ratios are mostly computed based on historical costs as a result;…

Q: Could you please discuss the limitations of financial ratio analysis

A: Introduction Ratio analysis may be defined as that type of analysis tools which is used to ascertain…

Q: 1. What’s the difference between fundamental analysis and technical analysis?  Don’t simply define…

A: Since, there are more than one question is posted at a time, the answer for first question is only…