Questions from Financial Reporting

Q: In valuation of stock equity, fundamental analysis makes extensive use of

In valuation of stock equity, fundamental analysis makes extensive use of multipored discounted cash flow. Comment.

Q: The use of multiples and conventional financial reports is not well accepted

The use of multiples and conventional financial reports is not well accepted by the traditional financial literature or many valuation books. Comment

Q: Multipored discounted valuation models do not seem to play a significant role

Multipored discounted valuation models do not seem to play a significant role in analysts’ normal valuation activity. Comment.

Q: Comment on the importance of an assessment of company management when valuing

Comment on the importance of an assessment of company management when valuing a company from the perspective of analysts and fund managers.

Q: We are interested in the future when valuing the stock equity of

We are interested in the future when valuing the stock equity of a company. Therefore, traditional financial statements are of little use in this endeavor. Comment.

Q: It appears that most restatements are symptomatic of financial reporting fraud.

It appears that most restatements are symptomatic of financial reporting fraud. Comment.

Q: Commercial loan officers regard profitability financial ratios as very significant. Comment

Commercial loan officers regard profitability financial ratios as very significant. Comment.

Q: Which two financial ratios do commercial loan officers regard as the most

Which two financial ratios do commercial loan officers regard as the most significant? Which two financial ratios appear most frequently in loan agreements?

Q: Corporate controllers regard profitability financial ratios as very significant. Comment.

Corporate controllers regard profitability financial ratios as very significant. Comment.

Q: List the top five financial ratios included in corporate objectives according to

List the top five financial ratios included in corporate objectives according to the study reviewed in this book. Indicate what each of these ratios primarily measures.