Public Employees’ Retirment System of Mississippi
Market to book ratio is the ration of market price per share divided by the book value per share, it can be mathematically expressed as below:
Market to Book Value=
In this problem the first step is to find Market Value per share
PE Ratio is given by the following formula:
PE Ratio=
12.8=
Market Price Per Share=$25.216
We now find Book Value Per Share, Book Value is nothing but the Equity Value of the Organization, In the given problem, we don't have this information, but we have total assets, which amounts to $416900($329700+$87200). Using Debt Ratio we can find book value per share as below:
Lets assume Shareholders Equity is x, Thus total liability will be Total Assets-x
Debt Equity Ratio is given as below:
Debt Equity Ratio=
0.42=
x=$293592
Book Value per share=$293592/36000
Book Value per Share=8.155
Market to book value=25.216/8.15533
Market to book value ratio= 3.09
Answer:
B) $ 485 $ 170
Explanation
The cost of goods manufactured includes all the manufacturing costs in a given period adjusting for changes in work in process balances. The total manufacturing costs are $ 630 but this results in an increase in work in process inventory by $ 145, so in other words, part of the total manufacturing costs have gone towards increasing the work in process balance.
So the cost of goods manufactured is $ 630 - $ 145 = $ 485.
The cost of goods sold is the cost of goods manufactured above adjusted for changes in finished goods.
so the cost of goods sold is $ 485 - $ 315 ( change in finished goods inventory) = $ 170.
Answer:
1) strong form efficient.
Explanation:
The efficient market hypothesis states that all the relevant information regarding stocks traded in a market is already included in the price of the stocks.
This investment theory argues that if all the relevant information was public, then even if a person had insider information, it would be useless since everyone should have access to the same information. Of course this model is only theoretical, since in real life information is something very valuable and not everyone has access to it.
Answer:
Answer explained below
Explanation:
In determining the next big market to expand, the firm should do an analysis of the strengths and weaknesses of the company and also should try to understand the opportunities and threats that the external world would present to the company. This can be accomplished by using a SWOT analysis and by aligning the strengths with the opportunities, the firm can zero down on the potential opportunities.
Next the firm can also do an analysis of the internal culture of the firm and also do a PESTLE analysis of the potential markets so that a mapping of the political, economic, technological and cultural factors can be done and it can studied which market is the closest to the current market across dimensions. Once the closest target market is identified, it can then decide to expand into that market.
As per the analysis, it would be beneficial for the firm to expand into a market where the spending power of the consumer is similar to US and there is a certain degree of cultural similarity. So such a candidate market could be United Kingdom.
The process followed for determining the potential market is:-
1) Determining internal strengths and weakness.
2) Access external market opportunities and threats
3) Determination of potential markets.
4) Undertaking a PESTLE analysis and determining the most suitable market by choosing the market which is most similar in all dimensions to the current market.
The risks of the plan is that there could be unforeseen events or disruption which may make the choice unviable or incorrect. Moreover it is slow and exhaustive process, so go to market may be slow.
The advantages are that all pros and cons are evaluated and so chances of success and risk mitigation is high.
