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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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On March 15, 20X7, Barrel Company paid property taxes of $120,000 on its factory building for calendar year 20X7. On July 1, 20X
Kisachek [45]

Answer:

Total expenses = $40,000

Explanation:

Total expenses for the quarterly income statement for the three months can be calculated as follows

Data

Property taxes paid = $120,000

Unanticipated repairs = $20,000

Expenses for quarterly income statement =?

Solution

Total expenses = Property taxes paid + Unanticipated repairs

Total expenses = ($120,000 x 3/12) + ($20,000 x 3/6)

Total expenses = $30,000 + $10,000

Total expenses = $40,000

Total expenses of $40,000 should be included in Barrel's quarterly income statement for the three months ended September 30, 20X7

4 0
3 years ago
In a contract, what is consideration? A. The list of people who are legally authorized to negotiate the contract B. An exchange
vovikov84 [41]
Consideration<span> is the concept of legal value in connection with </span>contracts, so option <span>A. The list of people who are legally authorized to negotiate the contract !</span>
4 0
3 years ago
Read 2 more answers
5. A firm currently produces its desired level of output. Its marginal product of labor is 400, its marginal product of capital
gizmo_the_mogwai [7]

Answer:

D.

Explanation:

Firms will hire more labor when the marginal revenue product of labor is greater than the wage rate, and stop hiring as soon as the two values are equal.

7 0
4 years ago
The Carbondale Hospital is considering the purchase of ambulance. The TheXarbondale Hospital is considering the purchase of ambu
babunello [35]

Answer:

Explanation:

A) using 2-year moving average :

Year 6 : (3800 + 3700) = 7500 / 2 = 3750

2) Mean absolute deviation based on the forecast above :

(3000 + 4000) = 7000/2 = 3500

(4000 + 3400) = 7400/2 = 3700

(3400 + 3800) = 7200/2 = 3600

3000

4000

3400 __3500__100

3800__3700__100

3700__3600__100

Mean absolute deviation = (100 + 100 + 100) /3 = 300/3 = 100

C) weight of 0.4 and 0.6

(0.4*3000 + 0.6*4000) = 3600

(0.4*4000 + 0.6*3400) = 3640

(0.4*3400 + 0.6*3800) = 3640

3000

4000

3400 __3600__200

3800__3640__160

3700__3640__60

(200 + 160 + 60) = 420 / 3 = 140

5 0
4 years ago
The CEO of Mabel Automobiles was the child of parents who had difficulty making enough money to support their family. As a resul
m_a_m_a [10]

Answer:

A. upper-echelons theory

Explanation:

Upper echelons theory postulates that too executives of a company view situations in a highly personalised way that is as a result of their experiences, values, and personalities.

The CEO of Mabel emphasized making affordable, low-maintenance vehicles that could be bought by low-income households.

This decision was as a result of his childhood experience where his parents had difficulty providing money to support the family.

He empathized with low income households, and wanted to provide goods that will help them

6 0
3 years ago
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