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Ymorist [56]
2 years ago
10

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

Business
1 answer:
sveta [45]2 years ago
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

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During 2020 the DLD Company had a net income of $85,000. In addition, selected accounts showed the following changes: Accounts R
zmey [24]

Answer:

$84,500

Explanation:

Data provided as per the question

Net income = $85,000

Depreciation expenses = $1,500

Accounts receivables = $3,000

Increase in accounts payable = $1,000

The computation of amount of cash provided by operating activities is given below:-

Amount of cash provided by operating activities = Net Income + Depreciation expenses - Accounts receivables + Increase in accounts payable

= $85,000 + $1,500 - $3,000 + $1,000

= $84,500

Therefore, for computing the Amount of cash provided by operating activities we simply applied the above formula.

5 0
3 years ago
A ________ has been defined as "an association of two or more persons who carry on as co-owners of a business for profit."
Goryan [66]
A partnership has been defined as "an association of two or more persons who carry on as co-owners of a business for a profit."


A partnership is a legal agreement/arrangement where people, known as partners, work together and are beneficial to one another in terms of business. A fun example of a partnership is Ben & Jerry's ice-cream. Founded by Ben & Jerry they were partners in their company and created a successful business though partnership. 
6 0
3 years ago
Your boss has asked you to implement a non-disruptive and incremental approach to ensure business process excellence. What kind
Vesnalui [34]

Answer:

I would propose a business process improvement (BPI) where management will analyze business procedures and try to determine which ones can be improved and how they should be improved. The advantage of using BPI is that it focuses on organizing work around business processes and not individual tasks which makes it non-disruptive, and it is also incremental in nature.

5 0
4 years ago
Do someone have hangouts ?
victus00 [196]
What do you mean by hangouts???
8 0
3 years ago
Read 2 more answers
Suppose you sell a fixed asset for $112,000 when its book value is $112,000. If your company's marginal tax rate is 39 percent,
Dmitriy789 [7]

Answer:

The after tax cash flow will be $112,000.

Explanation:

The market value of the fixed asset is given at $112,000.

The book value of the same asset is $112,000.

The marginal tax rate is 39%.

The after tax cash flow will be

= Book\ value\ +\ (Market\ value\ -\ book\ value)\ \times\ (1\ -\ t)

= \$ 112,000\ +\  (\$ 112,000\ -\ \$ 112,000 )\ \times\ (1\ -\ 0.39)

= \$ 112,000\ +\ (0\ \times\ 0.61)

= $112,000

8 0
3 years ago
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