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Once a firm knows what is it should produce what must it then decide?
Once a firm knows what is it should produce what must it then decide
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30. How would you describe this industry?
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30. How would you describe this industry?
A firm with earnings per share of 5 and a price-earnings ratio of 15 will have a stock price of?
Just use 5 times 15. $75.
What is the meaning of a four-firm concentration ratio of 50 percent?
A four-firm concentration ration of 50 percent means that the top four firms of a particular industry produce 50% of the total output for the entire industry. The higher the concentration ration, the closer the industry becomes to an oligopoly or a monopoly.
What type of competition would most likely exist with a four-firm concentration ratio of 94?
Either an oligopoly (dominated by a few firms) or monopoly (if these 4 firms collude - control price and supply)
What is ideal quick ratio of a firm?
Quick ratio means
When evaluating the operating efficiency of a firm's managers What ratio would you look at?
When evaluating the operating efficiency of a firm's managers, you would look at the Asset Evaluation Ratio.
If A firm that has an equity multiplier of 4.0 will have a debt ratio of?
0.75
What is a firm's capital structure?
Capital structure is basically how the firm chooses to finance its asset, or is the composition of its liabilities. A large way of measuring capital structure is a firms debt to equity ratio - the higher this ratio is, the more leveraged (the more indebted) the firm is.
A firm uses 1 million in cash to purchase inventories what will happen to its current ratio its quick ratio?
stays the same
Which group of ratios shows the extent to which the firm is financed with debt?
liquidity ratio
How do you calculate debt service coverage ratio of a firm?
Debt Service Coverage Ratio = Interest payable on debt/Net Profit
A firm has a current assets of 800000 current liabilities of 600000 The firm uses 200000 of its cash balance to pay off a current liabilities Calculate the current ratio before and after this?
Current ratio before payment = 800000 / 600000 = 1.33 Curren ratio after payment = 600000 / 400000 = 1.5
What financial ratio is the best measure of the operating effectiveness of a firm's management?
quick ratios
What factors might influence a firm's price-earnings ratio?
The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors
What ratio or other financial statement analysis technique will you adopt for analysis of liquidity of a firm?
What ratio or other financial statement analysis technique will you adopt for this.
What is the primary determinants of a firm's value?
- shareholder's wealth - growth - dividend-payout ratio - leverage -
