Wso technicals - Study guides, Class notes & Summaries

- The income statement alone won't tell you whether a company generates enough cash to stay afloat or whether it is solvent. - You need the balance sheet to tell you whether the company can meet its future liabilities, and you need the cash flow statement to ensure it is generating enough cash to fund its operations and growth. - Why is the income statement alone not enough to value a company? - The income statement alone won't tell you whether a company _____________ enough _________ to ...

How/why do you lever/unlever Beta? - Answer-The levered beta will be the beta you get from a website like yahoo finance. "By unlevering the beta, you are removing the financial effects from leverage (debt in the capital structure). This unlevered beta shows you how much risk a firm's equity has compared to the market. Comparing unlevered betas allows an investor to see how much risk they will be taking by investing in a company's equity (i.e. buying stock in the public market). When you ...