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WGU D366 EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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WGU D366 EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS
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WGU D366 EXAM 2024/2025 WITH 100%ACCURATE SOLUTIONS
A firm is using estimates of what its share value is in order to make
decisions about whether to buy, sell, or hold onto its equity securities.
Which state of financial statement analysis is the firm involved in? -
Precise Answer ✔✔Step 6: Value the firm
During this step, the value of the firm is determined, often along with its
intrinsic value. This includes the intrinsic value and the selling prices for
existing assets of the firm at a given time.
As part of its financial statement analysis, a company is estimating what
its likely future profitability, growth, and risk will be, and, in turn, the
likely future returns from investing in the company.
Which step of financial statement analysis is the firm involved in? -
Precise Answer ✔✔Step 5: Preparing forecasted financial statements
As part of its financial statement analysis, a company is evaluating the
business model the firm is executing to be different and successful in its
industry.
Which step of financial statement analysis is the firm involved in? -
Precise Answer ✔✔Step 2: Identifying the strategies the firm will use to
gain and keep a competitive advantage
,Step 2 involves asking questions about the business model, current
competitive advantages, sustainability of that advantage, and if products
are meeting needs.
As part of its financial statement analysis, a company is reviewing
whether its profit margin is increasing or decreasing over time.
Which step of financial statement analysis is the firm involved in? -
Precise Answer ✔✔Step 4: Using financial statements to analyze current
profitability, growth, and risk
Step 4 asks about the rate of return from assets, rate of return for
common equity shareholders, and whether profit margin is increasing or
decreasing over time.
A potential investor is identifying whether or not the company belongs
to an industry that includes a large number of firms selling the same
product or only a small number of firms selling unique products.
Which step of financial statement analysis is the potential investor
involved in? - Precise Answer ✔✔Step 1: Identifying the economic
characteristics and competitive dynamics of the industry in which the
firm participates.
Step 1 involves asking about dynamic forces driving competition and
how technological change impacts competitive advantage.
As part of its financial statement analysis, an auditor is trying to
determine whether its client has selected a specific certain accounting
method simply to make the firm appear more profitable or less risky
than economic conditions otherwise suggest.
, Which step of financial statement analysis is the auditor involved in? -
Precise Answer ✔✔Step 3: Obtaining and evaluating the quality of the
information available from a firm's financial statements
Step 3 involves asking questions about nonrecurring gains or losses in
earnings, if the firm is claiming certain assets or liabilities, or if the firm
is using certain accounting methods to make the firm appear more
profitable.
Which of Porter's Five Forces depicts vertical competition in the value
chain? Choose two answers. - Precise Answer ✔✔Buyer power
Supplier power
Which of Porter's Five Forces depict horizontal competition in the value
chain? Choose two answers. - Precise Answer ✔✔Rivalry among
existing firms
Potential entry
"Rivalry among existing firms" is correct. According to Porter's Five
Forces framework, rivalry among existing firms represents horizontal
competition among current or potential future firms in the industry and
closely related products and services.
"Potential entry" is correct. According to Porter's Five Forces
framework, potential entry represents horizontal competition among
current or potential future firms in the industry and closely related
products and services.
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