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2 years 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.

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Federal spending that is authorized by permanent laws and does not go through the annual appropriation process is called _____ s

Over [174]

Federal spending that is authorized by permanent laws and does not go through the annual appropriation process is called mandatory spending.

<h3>What does mandatory spending signify?</h3>

Government spending that is subject to eligibility standards established by Congress is known as mandatory spending. Social Security, Medicare, and unemployment insurance are a few examples. All spending that does not occur through appropriations legislation is referred to as mandatory spending. Spending that is necessary includes contributions to entitlement systems like Social Security and Medicare as well as required interest payments on the national debt. Government expenses for legally required programs are considered mandatory spending. Major fiscal trends are heavily influenced by mandatory spending. Government income decrease and spending increases during economic downturns as more people become eligible for required programs like Income Security and Unemployment Insurance. Deficits thus grow or surpluses decline as a result.

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8 0

1 year ago

What is the current value of a future sum of money called?

Dennis_Churaev [7]

<span>Present value is the current value of a future sum of money. Present value of money is used to compute the time value of money. It is also known as ‘present discounted value’ or ‘discounted value.’ It is the worth of money now to be paid in series of payments at a certain interest rate to arrive at the future value.</span>

6 0

3 years ago

Which group tried to learn American Indian languages and customs?

sammy [17]

Answer:

The French

Explanation:

Edge babyyyyy

8 0

3 years ago

You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested i

Licemer1 [7]

Answer:

[ 250000 / ( 0.97 ) ] * [ 1 - ( (1 +1.9) / (1+ 2.87 ) ^25 ] + $800000 is the amount being offered

Explanation:

Amount offered today = $800000

First payment (p) = $250000

EAR = 12 percent

payments increase by 1.9 percent per quarter

Total amount of payments = 25 quarterly payments = 6.25 years

note : there are 4 quarters in a year

How much is been offered for the company

APR = (1+ EAR)^(1/n)*n

= ( 1 +12%)^(1/4)*4 = 11.49%

( interest rate per annum ) = 11.49%

number of compounding interest per annum = 4

interest rate per period (r) = 2.87%

number of periods(n) = 25

growth rate(g) = 1.9%

first we have to calculate the PV of Cash-flows of the 1st payment ( $250000)

pv = [ p / (r-g) ] * [ 1 - [(1 +g ) / (1 + r)]^n ]

= [ 250000 / ( 0.97 ) ] * [ 1 - ( (1 +1.9) / (1+ 2.87 ) ^25 ]

7 0

3 years ago

5. Cruzville economists have been using 2013 as their base year to calculate inflation. a) What is the CPI during the base year

4vir4ik [10]

Based on the base year used by Cruzville economists to calculate inflation, the following at the CPIs:

2013 = 100
2014 = 112
2015 = 130

<h3>What is the CPI over the years?</h3>

As 2013 is the base year, the CPI will be 100 because all base years are 100 for CPI purposes.

The CPI in 2014 is:

= 112

This is due to an inflation rate of 12%.

An inflation rate of 16.1% is the reason why the CPI in 2015 is 130.

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5 0

2 years ago