Firms that use a direct listing to go public typically hire a designated financial advisor (DFA) that engages in price stabilizing activities during the lockup period.   Question options:   a) True   b) False

Discuss the major methods of a company valuation. In doing so, explain each method and compare their advantages and disadvantages with the other methods you choose to discuss Discuss the above based on the following: Explain the market capitalization. Explain the book value. Explain (expected) future earnings. Provide a narrative on other methods (minimum of two). Compare market capitalization, book value, and future earnings methods (and your other chosen methods) with each other to include their advantages and disadvantages.

(Assumptions, Principles, and Constraint) Presented below are a number of operational guidelines and practices that have developed over time. Select the assumption, principle or constraint that most appropriately justifies these procedures and practices. A.) All significant post-balance sheet events are reported B.) Intangibles are capitalized and amortized over periods benefitted C.) Price -level chances are not recognized in the accounting records D.) Brokerage firms use market value for purposes of valuation of all marketable securities E.) Financial information is presented so that reasonably prudent investors will not be misled F.) Lower-of-cost-or-net realizable value is used to value inventories G.) Each enterprise is kept as a unit distinct from its owner or owners H.) All important aspects of bon indentures are presented in financial statements I.) Revenue is recorded when the performance obligation is satisfied J.) a company charges its sales commission costs to expense K.)…

Which of the following pairs of financial statement analysis tool will be given more emphasis by a firm that is considering whether to grant trade credit or sell on account to a new client? a. Current and cash ratio b. Book value and price-to-earnings ratio c. Debt and debt-to-equity ratio d. Return on sales and return on asset

1) In most cases, book value reasonably approximates the current market value. This will not be the case in what type of situation(s)? 2) Describe the benefits of a scenario DCF valuation model. What factors should be considered when constructing scenario parameters? 3)Define purchasing power parity. What is the importance of purchasing power parity when you are trying to establish value for a company located in an emerging market? Please provide references.

A common mistake that can occur in valuing a target would be: Group of answer choices Applying the acquirer’s growth rate in revenues to the target’s sale levels. Applying the acquirer’s cost of capital in the target’s evaluation equation. Applying the acquirer’s price-earnings ratio to the target’s earnings. All of these choices.

Marketers could suggest a number of situations that the company may consider investment in. O They could recommend new capacity expansion to satisfy potential new markets. OThey could recommend the purchase of a competitor to gain market share. They could recommend a change in the companies account receivable policy. O All of the above. OA, B but not C

H5. Which of the following is not a criteria that's used to pick your trading comparables? Product/service offerings are similar Company size is similar Operates in similar geographic areas Valuation multiples are trading at similar ranges Similar revenue growth rate and margin profile    Explain with details also explain wrong options

Which of the following statements is most correct? Select one: A.  A company with a current ratio of 0.5, should purchase additional inventory on credit if it wants to improve this ratio. B. Return on assets is a function of two variables, the profit margin and current asset turnover. C. A company with a current ratio of 0. 5, should sell some of the existing inventory at cost if it wants to improve this ratio. D. Firms with low rates of return on stockholders’ equity tend to sell at relatively high ratios of market price to book value.

The weak-form of EMH implies which of the following may be used to earn an abnormal return and beat the market(a) Technical analysis using all past price information (b) Fundamental analysis using company accounts’ data (c) Insider trading (d) Both answers B and C