How can two companies with identical P & L statements (identical profitablity) at year end provide...

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How can two companies with identical P & L statements(identical profitablity) at year end provide different annualreturns to each of their investors? Which company is the riskierinvestment? Discuss some different scenarios that result indifferent levels of risk in each of the cases. Cite outsidearticles/material.

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Ans It is not always necessary that the companies who have the same or Identical Profit and Loss statements at the yearend will provide the same returns It may be possible that a company with an identical P L structure may provide the same return or may not See Answer

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How can two companies with identical P & L statements(identical profitablity) at year end provide different annualreturns to each of their investors? Which company is the riskierinvestment? Discuss some different scenarios that result indifferent levels of risk in each of the cases. Cite outsidearticles/material.

How can two companies with identical P & L statements (identical profitablity) at year end provide...

90.2K

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Finance

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