All categories

1 year ago

The price/sales multiple is typically only used for the valuation of firms without earnings. true false

1 answer:

3 0

The main purpose of price/sales multiple ratio is typically only for the purpose of valuation of firms having no earnings till the date of valuation. Therefore, the given statement holds true.

<h3>What is the significance of Price/Sales ratio?</h3>

Price/Sales ratio can be referred to or considered as a ratio that is used to determine the total sales made by the company without earning any profits over their sales at a given price.

Investors use this ratio in order to valuate a firm based on the sales they have made in multiples, however without earnings, that can prove to derive good investment returns in the future.

Therefore, the aforementioned statement regarding price/sales ratio holds true.

Learn more about price/sales ratio here:

brainly.com/question/14856408

#SPJ4

You might be interested in

QUESTIONS

Sliva [168]

Answer: B

Explanation:

you can pass on the right if you are driving on a one way road.

3 0

3 years ago

Behavioral segmentation addresses the knowledge of, use of, response to, and attitude toward a product. Which of these is an exa

-Dominant- [34]

Answer:

<u>an airline targeting customers with over 500k miles of travel on its airline</u>

Explanation:

Note, the focus of behavioral segmentation is to identify and separate the marketing strategy used on clients/customers based on mainly their behavior, and not on demography (age, gender, etc) or geography.

Hence, the best scenario from the above options is that of an airline that targets customers with over 500k miles of travel on its airline. In other words, their traveling behavior (distances covered) is the basis why they are targeted, without consideration of demography or their geography.

3 0

2 years ago

JG Asset Services is recommending that you invest $1,500 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compou

skelet666 [1.2K]

Answer:

So after 5 year total amount will be $1781.529

So option (a) is correct option

Explanation:

We have given that JG Asset is recommending that you invest $1500 for 5 years at rate of 3.5%

So principle amount P = $1500

Rate of interest r = 3.5 %

Time n = 5 years

We know that when total amount is given by

$A=P(1+\frac{5.5}{100})^n$ , here r is rate of interest and n is time period

So amount after 5 years will be

$A=1500(1+\frac{3.5}{100})^5=$1781.52$

So after 5 year total amount will be $1781.529

So option (a) is correct option

5 0

3 years ago

When the allowance method is used to account for uncollectible accounts, Bad Debts Expense is debited when A. a customer’s accou

MaRussiya [10]

Answer:

Option D. management estimates the amount of uncollectibles

Explanation:

When the company estimates the bad debts, reflects it in the balance sheet through a Debit entry in the Bad Debt Expenses againts the asset account Allowance for Doubtful Accounts as a Credit.

When the bad debt are confirm as uncollectible the loss is reflected in the Account Receivable as a Credit with the correspondent debit entry in the Allowance for Doubtful Accounts.

7 0

3 years ago

Microsoft studies correlations between its successful workers and the schools and companies they arrived from, an application of

sertanlavr [38]

<span>The statement about "Microsoft studies correlations between its successful workers and the schools and companies they arrived from, an application of business analytics" is true. The answer is letter B. An example is a paper called Diamonds in the Data Mine by Gary Loveman, the CEO of the Harah's gambling empire. He wanted to know how data-mining software was used to study numerous amounts of casino customer data to target profitable sponsors. So the statement above aids in the recruitment of these sponsors using data-mining software such as microsoft.</span>

4 0

3 years ago