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2 years ago

What are the main attractions and limitations of the comparator approach in valuation?

Business

1 answer:

postnew [5]2 years ago

3 0

<h3> The main attractions of comparator approach in valuation?</h3>

It is useful in comparing prices and monitoring trends of goods sold

It uses a company financial information and it can be used to understudy a competitor.

<h3>The main limitations of comparator approach in valuation?</h3>

It requires financial information for other company which may not be easily accessible.

<h3>What is comparator approach in valuation?</h3>

The approach is used to compare sales of similar goods in a particular location.

The analysis is done for goods that are sold within a period of time that is not too far from each other.

Learn more on comparator approach below

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An existing electrical power line needs to have its capacity increased, and this can be done in either of two ways. The first me

nekit [7.7K]

Answer:

3 years

Explanation:

<u>First method</u>

The PV of the investment can be written as:

PV1 = $15,000 + $32,500/(1+0.06)^n

<u>Second method</u>

The PV of the investment can be written as:

PV2 = $23,000 + $23,000/(1+0.06)^n

After n years both projects will be economically equal. Hence their present value must be equal PV1 = PV2

$15,000 + $32,500/(1.06)^n = $23,000 + $23,000/(1.06)^n

$23,000 - $15,000 = $32,500/(1.06)^n - $23,000/(1.06)^n

$8,000 = $9,500/(1.06)^n

(1.06)^n = $9,500/$8,000

(1.06)^n = 1.1875

Taking log on both sides we get:

nlog1.06 = log 1.1875

n = log 1.1875/log 1.06

n = 0.07463361829/0.02530586526

n = 2.94926166417121

n = 3

So, the answer is 3 years

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2 years ago

Assume the following information pertaining to Moonbeam Company:

Nana76 [90]

Answer:

<u>d. Material Purchases = $ 169,000</u>

Explanation:

Cost Of Goods Statement.

Beginning Direct Materials = $117,000

Add Material Purchases = $ 169,000

Less Ending Direct Materials = <u>$130,000 </u>

Direct Materials Used = $156,000 ( given)

Direct Labor= $ 697,000

Factory Overhead = $199,000

Total Manufacturing Costs = $896,000

Beginning WIP Inventory = $85,000

Ending WIP Inventory = $104,000

Cost of Goods Manufactured= $ 1033,000

Beginning Finished Goods Inventory = $130,000

Ending Finished Goods Inventory = $124,000

Cost Of Goods Statement = $ 1039,000

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3 years ago

Im bored who wanna talk im hella cool and lowkey chill ;)

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Answer:

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Explanation:

dude

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3 years ago

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Answer:

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3 years ago

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The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $60,226 1,3

Anton [14]

Answer:

Variable cost per unit = $4.60

Explanation:

To calculate the element of variable cost in a mix cost using high-low method, we need to take the cost of the highest activity level and subtract the cost of the lowest activity level from it and divide the answer by the difference between the highest and the lowest activity levels.

<u>High-low method</u>

Variable cost per unit = (Highest Activity Cost - Lowest Activity Cost) / (Highest Activity Units - Lowest Activity Units)

Variable cost per unit = (66436 - 60226) / (2660 - 1310) = $4.60 per unit

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3 years ago