When could debt be better than stock?
What is the most widely used technique for determining the best combination of debt and stock? Select one: a. Capital Asset Pricing Model. b. Gross Profit Analysis. c. Earnings Per Share/Earnings Before Interest and Taxes Analysis. d. Debt-to-Stock Ratio. e. …
Are stock issuances always better than debt for raising capital?
· 58) Return on Assets is the most widely used technique for determining whether debt, stock, or a combination of debt and stock is the best alternative for raising capital to implement strategies. Answer: FALSE.
What is the most common type of financial budget?
The ________________ analysis is the most widely used technique for determining whether debt, stock, or a combination of the two is the best alternative for raising capital to implement strategies. Discounted payback. Benefit-cost ratio (BCR). New present value (NPV). Earnings per share/Earnings before interest and taxes. Expert Answer
What is true about debt in low earning periods?
What is the most widely used technique for determining the best combination of debt and stock? A. Stock Issuance. What tends to become a more attractive financing technique when interest rates are high? D. Forecast sales as accurately as possible. The first step in performing project financial analysis is to.
What is a central strategy implementation technique?
Firms employ various business strategies to gain market share over competitors and make sustainable profits. The results from strategy-implementation must be examined with the projected financial analysis technique.
What is the method of determining a firm's net worth?
You can calculate your net worth by subtracting your liabilities (debts) from your assets. If your assets exceed your liabilities, you will have a positive net worth.
Which two variables rank as marketing most important contributions to strategic management?
Market segmentation and product positioning rank as marketing's most important contributions to strategic management. Market segmentation can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.
What percent of strategies formulated are successfully implemented?
Strategies can be implemented successfully only when an organization markets its goods and services effectively and raises needed working capital. Less than 10 percent of strategies formulated are successfully implemented!
Which method of determining a firm's net worth divides the market price of the firm's stock by the annual earnings per share?
Price-Earnings Ratio MethodThe correct option is: C) Price-Earnings Ratio Method The price-earnings ratio is considered as a financial ratio of a company which...
What is net worth method in financial accounting?
Net worth is calculated by subtracting all liabilities from assets. An asset is anything owned that has monetary value, while liabilities are obligations that deplete resources, such as loans, accounts payable (AP), and mortgages.
What is the most important variable in the market?
Consumer Values: The Most Important Variable in a Business's Economic Success.
Why is market segmentation an important variable in the strategy?
Why is market segmentation an important variable in the strategy-implementation process? It directly affects marketing mix variables. Matching factors would allow factories to produce desirable levels without extra shifts, overtime, or subcontracting?
Which strategy evaluation activity requires making changes to competitively reposition a firm for the future?
Taking corrective action is the final strategy evaluation activity. It requires making changes to competitively reposition a firm for the future.
Are quantitative criteria commonly used to evaluate strategies?
Financial ratios are quantitative criteria commonly used to evaluate strategies.
What are examples of important finance accounting activities central to strategy implementation?
Several finance/accounting concepts central to strategy implementation are acquiring needed capital, developing projected financial statements, preparing financial budgets, and evaluating the worth of a business.
Which of these strategies is effective when the number of suppliers is small and the number of competitors is large group of answer choices?
(4) Horizontal Diversification strategies is effective when the number of suppliers is small and the number of competitors is large.
How is the net worth of a firm calculated quizlet?
A firm's net worth is equal to total assets minus total liabilities. A firm's net worth is equal to total assets minus total liabilities.
What is net asset method?
Key Takeaways The adjusted net asset method, also called the asset accumulation method, is a business valuation that adjusts assets and liabilities to reflect fair market value. This valuation method can be used in liquidation scenarios or going-concern assessments.
What is net worth method in single entry system?
Net worth method is also called the statement of affairs method or capital comparison method. According to this method, profit or loss of the business is determined by making a comparison between the capitals of two dates of a period.