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Homework answers / question archive / If an analyst expects a firm to generate net income each period exactly equal to required earnings, then the value of the firm will be: Residual income valuation focuses on: Residual income is: One important difference between return on assets (ROA) and return on common shareholder's equity (ROCE) is that: Beta is a representation of Systematic risk is greater if Which factor does not explain differences or changes in ROA? Which of the following might an analyst not want to eliminate from past earnings when using past earnings to forecast future earnings? Which of the following is a way a company can achieve a low-cost position? Time-series analysis helps answer all of the following questions
exactly equal to the book value of common shareholders' equity.
earnings as a periodic measure of shareholder wealth creation
the difference between the net income the analyst expects the firm to generate and the required earnings of the firm
.
ROA does not differentiate based on how a company finances its assets; ROCE does.
systematic risk in the market
Beta is greater than 1
Financial Leverage
Revenue from the sale of inventory (anything thats not unusual or recurring)
Outsourcing, production efficiency, and economies of scale
Is the firm more or less risky? How is management of the firm responding to external economic forces? Is the firm becoming more or less profitable over time?