PART 1
Write a 250- to 300-word response to the following:
What is valuation of companies and how does it relate to the incorporation of business risk and financial risk in valuation?
Include your own experience as well as 2 citations that align with or contradict your comments as sourced from peer-reviewed academic journals, industry publications, books, or other sources. Cite your sources using APA formatting.
PART 2
REPLY in 150 words
Business valuation is a significant process for any investor who is in the process of acquiring a firm. Predicting the cash flow of an organization aids in evaluating the growth of an organization in the form of analyzing its future credits and debits. However, one of the vital components which has to be considered is the inflation rates for the projected inflows and outflows.
Elucidate on the tools which could help accomplish and facilitate this process of forecasting cash flows.
PART 3
REPLY IN 150 Words
Financial accounting reports are based on standards and benchmarks set by the Generally Accepted Accounting Principles (GAAP). Reports made by companies should be based on the ground rules stipulated by GAAP. There was a time when white-collar crime resulted as a slap on the wrist. After Enron and WorldCom, this has changed.
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