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Discuss the Difference Between the Impostor Rule and the Fictitious

question 30

Essay

Discuss the difference between the impostor rule and the fictitious payee rule.

Understand the concept of cash flow recovery from net working capital at the end of a project.
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Definitions:

Shares Outstanding

The total number of shares of a company that are currently owned by investors, including both public and institutional holdings.

P/E Ratio

Stands for Price-to-Earnings Ratio, a valuation metric used to compare a company’s current share price to its per-share earnings.

Stock Price

The current price at which a share of a company is bought or sold in the financial markets.

EPS

Stands for Earnings Per Share, a financial ratio indicating the amount of income each share of stock represents, serving as an indicator of a company's profitability.

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