Questions from Financial Management

Q: Much has been made about the sweeping changes that are occurring in

Much has been made about the sweeping changes that are occurring in Europe as a result of the euro. Will the euro help European firms become more efficient? Will it change the way multinational corpor...

Q: Explain how ratio analysis in general, and the DuPont system in

Explain how ratio analysis in general, and the DuPont system in particular, can be used by managers to help maximize their firms’ stock prices

Q: How would each of the following factors affect ratio analysis?

How would each of the following factors affect ratio analysis? (a) The firm’s sales are highly seasonal. (b) The firm uses some type of window dressing. (c) The firm issues more debt and uses the p...

Q: How might one establish norms (or target values) for the

How might one establish norms (or target values) for the financial ratios of a company that is just getting started? Where might data for this purpose be obtained? Could information of this type be us...

Q: Why are financial ratios used? Name five categories of ratios,

Why are financial ratios used? Name five categories of ratios, and then list several ratios in each category. Would a bank loan officer, a bond analyst, a stock analyst, and a manager be likely to put...

Q: Is it true that the “flatter” (more nearly horizontal

Is it true that the “flatter” (more nearly horizontal) the demand curve for a particular firm’s stock and the less important investors regard the signaling effect of the offering, the more important t...

Q: WorldCom capitalized some costs that should, under standard accounting practices,

WorldCom capitalized some costs that should, under standard accounting practices, have been expensed. Enron and some other companies took similar actions to inflate their reported income and to hide d...

Q: How could (accurate) balance sheet and income statement information be

How could (accurate) balance sheet and income statement information be used, along with other information, to make a statement of cash flows? What is the primary purpose of this statement?

Q: Differentiate between net income, EPS, EBITDA, net cash flow

Differentiate between net income, EPS, EBITDA, net cash flow, NOPAT, free cash flow, MVA, and EVA. What is the primary purpose of each item; that is, when and how is it used?

Q: How and why are regular accounting data modified for use in financial

How and why are regular accounting data modified for use in financial management?