Finance Questions
Budget: $10 – $30 USD
To Be answered individually and covering fully in one or two paragraphs:
1. Why are abnormal profits of a firm difficult to sustain?
2. Why is the industry considered in financial forecasting of a firm?
3. What is cash conversion cycle and how is it different from operating cycle?
4. Why is cash conversion cycle useful in financial analysis of a firm?
5. What are the two sources of value in an investment? Given an example of each.
6. What is the difference between arithmetic and geometric average return? Do they always converge?
7. Why do you think a single WACC is not applicable to all businesses in a corporation?
1. Why are abnormal profits of a firm difficult to sustain?
2. Why is the industry considered in financial forecasting of a firm?
3. What is cash conversion cycle and how is it different from operating cycle?
4. Why is cash conversion cycle useful in financial analysis of a firm?
5. What are the two sources of value in an investment? Given an example of each.
6. What is the difference between arithmetic and geometric average return? Do they always converge?
7. Why do you think a single WACC is not applicable to all businesses in a corporation?