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Pani-rosa [81]
2 years ago
6

M/b ratios typically exceed -select- , which means that investors are willing to pay more for stocks than their accounting book

values.
Business
1 answer:
skad [1K]2 years ago
4 0

M/b ratios typically exceed one, which means that investors are willing to pay more for stocks than their accounting book values.

The Book value is the carrying amount of the company's assets minus the receivables (such as company liabilities) that exceed common stock. The term book value comes from the accounting practice of accounting for assets at their original costs.

The Book value of a company is total assets minus total liabilities. Total assets and total liabilities are included on the balance sheet of the annual and quarterly reports.

Book value refers to the value of the asset reported on the balance sheet, that is, the value of the asset after the accumulated depreciation has been recorded. Every company owns multiple assets. Therefore, every business also has a book value, which is the present value of the asset minus the liability or accrued debt.

Learn more about investors here: brainly.com/question/690070

#SPJ4

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Omega Corp. has entered into a transaction with Lively Inc. Omega Corp will give its equipment to Lively Inc. in exchange for Li
Nadusha1986 [10]

Answer:

Explanation:

A.

Equipment-from Lively    $260,000

   Accumulated Depreciation  Dr.$80,000

   Equipment-old                      Cr. $250,000

    Cash                                      Cr.$30,000

       Gain on Exchange                Cr.$60,000

B.    

Equipment-from Lively (212,000-35,000)      Dr.$177,000

Accumulated Depreciation                             Dr.$80,000

Loss on exchange (balancing figure)            Dr.$23,000

Equipment old                                                  Cr.$250,000

Cash                                                                   Cr.$30,000                                

7 0
3 years ago
The selection process in a high-involvement management organization involves selecting new hires based upon:
kherson [118]
<span>we will explore the recruiting process used by human resource managers to review applications, test and interview candidates, perform reference checks and request health checks.The hiring process is the process of reviewing applications, selecting the right candidates to interview, testing candidates, choosing between candidates to make the hiring decision and performing various pre-employment tests and checks</span>
7 0
3 years ago
You are considering an investment in fields and struthers, Inc, and want to evaluate the firm's free cash flow From the income s
kirill [66]

Answer:

A.) $81,100,000

B.) $64,000,000

C.) $17,100,000

Explanation:

EBIT = $90 million

Tax rate = 21%

Depreciation = $10 million

gross fixed assets increased by $56 million

current assets increased by $44 million

current liabilities increased by $36 million

A.) Operating Cash flow for 2021

EBIT + Depreciation - (EBIT × Tax rate)

$90, 000,000 + 10,000,000 - (90,000,000×0.21)

100,000,000 - (18,900,000) = $81,100,000

B.) Investment in Operating capital for 2021:

Increase in gross fixed asset + (increase in current asset - increase in liability)

$56,000,000 + ( $44,000,000-$36,000,000)

= $56,000,000 + $8,000,000

= $64,000,000

C.) Free cash flow

Operating Cash flow - investment in operating

$81,100,100 - $64,000,000 = $17,100,000

3 0
3 years ago
Data concerning Dorazio Corporation's single product appear below:
Reika [66]

Answer:

30600 less 25 000 = 5600

increase in net income

Explanation

                                               1400 units                                               1000 units

sales                                       224 000                                                  160 000  

(1400*160) (1000*160)                                                                          

variable costs                   (106 400)                                                    (48 000)

(1400*76) (1000*48)                                                      

contribution margin            117 600                                                     112 000                          

fixed costs                             (87 000)                                                  (87 000)                                              

net operating income            30 600                                                   25000                              

6 0
3 years ago
You are contemplating adding direct selling activities to your existing bricks-and-mortar retail business to increase sales. You
Ksivusya [100]

Answer:

It may be more expensive and time-consuming than using an intermediary

Explanation:

Direct selling makes it hard to reach new customers and also entails spending an extensive time in trying to convince prospective customers before sales is made. Sadly, in some situations, some prospects do not buy in on the intended product and thus, no sale is made and time wasted.

8 0
3 years ago
Read 2 more answers
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