1 Why is there a difference between the book value of equity and the market value of equity for a going concern firm Where the two are approximately equal, what does this tell us about the state of a firm Revenue growth is a significant driver for most firms Discuss this statement with respect to a financial valuation analysis 2 For the following ratios, identify one industry where it is a critical operating measure and explain what an increase in the following ratios means for the operational performance of the company a Days Sales Outstanding b Days Sales of Inventory c Days Payable Outstanding d Capex as of revenue 3 Discuss three areas where the income statement and balance sheet are linked, either directly or indirectly a Retained Earnings b Depreciation with PP E c Interest expense with Debt 4 Explain why this is an inappropriate method for calculating depreciation rates Write the equation for a more correct method of calculating the Deprecation rate

Question: 1. Why is there a difference between the book value of equity and the market value of equity for a going-concern firm? Where the two

1. Why is there a difference between the book value of equity and the market value of equity for a going-concern firm? Where the two are approximately equal, what does this tell us about the state of a firm? Revenue growth is a significant driver for most firms. Discuss this statement with respect to a financial valuation analysis.

2.For the following ratios, identify one industry where it is a critical operating measure and explain what an increase in the following ratios means for the operational performance of the company

a. Days Sales Outstanding

b. Days Sales of Inventory

c. Days Payable Outstanding

d. Capex as % of revenue

3.Discuss three areas where the income statement and balance sheet are linked, either directly or indirectly

a. Retained Earnings

b. Depreciation with PP&E

c. Interest expense with Debt

4. Explain why this is an inappropriate method for calculating depreciation rates. Write the equation for a more correct method of calculating the Deprecation rate.

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