The pe ratio that is based on a firms financial statements and reported in the

The pe ratio that is based on a firms financial

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35. The p/e ratio that is based on a firm's financial statements and reported in the newspaper stock listings is different from the p/e ratio derived from the dividend discount model (ddm) because a. The ddm uses a different price in the numerator.B.The ddm uses different earnings measures in the denominator.C. The prices reported are not accurate.D. The people who construct the ratio from financial statements have inside information.E. They are not different - this is a "trick" question.36. The dollar value of a firm's return in excess of its opportunity costs is called its
37. Economic value added (eva) is also known as 38. To create a common size income statement ____________ all items on the income statement by ___________. 39. Which of the following are issues when dealing with the financial statements of international firms? I) many countries allow firms to set aside larger contingency reserves than the amounts allowed for u.s. Firms.Ii) many firms outside the u.s. Use accelerated depreciation methods for reporting purposes, whereas most u.s. Firms use straight-line depreciation for reporting purposes.Iii) intangibles such as goodwill may be amortized over different periods or may be expensedrather than capitalized.Iv) there is no way to reconcile the financial statements of non-u. S. Firms to gaap. A. I and iib. Ii and ivc.I, ii, and iiid. I, iii, and ive. I, ii, iii, and iv
40. To create a common size balance sheet ____________ all items on the balance sheet by ___________. 41. Common size financial statements make it easier to compare firms ___________. 42. Common size income statements make it easier to compare firms ___________.

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