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pogonyaev
3 years ago
9

Which of the following measures the percentage change in earnings before interest and tax(or operating cash flow) associated wit

h a given percentage change in sales? A) Degree of financial leverage B) Degree of operating leverage C) Degree of total leverage D) Degree of weighted average
What does P/E Ratio of a 10 indicate?
a. ​It would take 10 years for an investor to recover his or her initial investment
b. ​The firm will pay a dividend of $10 per share.
c. ​The value of the stock will be 10 times the initial investment at the time of maturity.
d. ​An investor would receive 10 percent of the total earnings of the firm, at the time of liquidation
Business
1 answer:
Anton [14]3 years ago
4 0

Answer:

1. Measure of the percentage change in earnings before interest and tax or operating cash flow:

B) Degree of operating leverage

2. P/E Ratio of 10 indicates that:

c. ​The value of the stock will be 10 times the initial investment at the time of maturity.

Explanation:

Company B's degree of operating leverage is the financial measure that shows the degree of change of the operating income of the company in relation to a change in her sales revenue.  With this measure, investors and analysts of Company B are able to evaluate how sales impacts the company's operating income.  There are many ways to measure a company's degree of operating leverage.  One of the methods subtracts the variable costs of sales and divides that number by sales minus variable costs and fixed costs.

Company A's P/E ratio or price/earnings ratio is the measure of the relationship between the current market price and its earnings per share.  It is used to evaluate the value of the company's stock.  It points out whether the company's stock is undervalued, overvalued, or correctly valued.

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Taylor Inc. has some material that originally cost $65,500. The material has a scrap value of $56,300 as is, but if reworked at
fgiga [73]

Answer:

-$2,350

Explanation:

In this question, we have to compare the cost which is shown below:

If we considered the reworked cost, then the sales would be

= Sales - reworked cost

= $55,700 - $1,750

= $53,950

And the scrap value is $56,300

So, the financial disadvantage would be

= Sales without reworked cost - scrap value

= $53,950 - $56,300

= -$2,350

All other information which is given is not relevant. Hence, ignored it

5 0
3 years ago
ason owns a small landscaping business called GreenScapes. When buying a new pickup truck for his landscaping business, Jason ne
Tomtit [17]

Answer: reciprocity

                       

Explanation: In simple words, reciprocity refers to the agreement in which two parties exchange goods or services in such a way that both of them will gain benefit from such agreement.

In business it can achieved in many ways, for example by combining the efforts and resources or by providing each other some service in exchange for service from the other side.

In the given case, Jason made a deal with dodge to provide service to him in exchange for service by him. Hence we can conclude that the given case depicts reciprocity.

4 0
3 years ago
Identify the correct order of the four steps used to prepare a production cost summary (report). 1)Summarize the cost flow of ph
Veronika [31]

Answer:

The answer is "Option C".

Explanation:

The Costs of production relate to the price of a company producing or producing a service, which can include the range of expenditures, like labor, manufactured goods, supplies of items, and expenses. It has mainly four steps that can be defined as follows:

  • Complete the physical unit flow.
  • Measure the production unit's equivalent.
  • Compare the value per unit for output equivalent.
  • Assign costs to finished units and manufactured units.

5 0
3 years ago
The ______technique for group decision making in which discussion is structured and the final solution is decided by silent vote
alukav5142 [94]

Answer:

The correct answer is nominal group technique.

Explanation:

This nominal group technique is a type of brain storming where structured meetings are being held among the members, where they will try to take out the solutions to the problems identified by them, and thus facilitating decision making. The meetings are structured here because the goal is to make sure the meetings are not dominated by few individuals and the silent members also share their thoughts and ideas with the rest of the group.

5 0
4 years ago
At the end of 2017, companies from one country collectively owned $22 billion in assets in its neighboring country. The $2 billi
Nastasia [14]

Answer:

A. Stock

Explanation:

The Stock of Foreign Direct Investment (FDI) measure the total level of direct investment at a given point in time, usually the end of a quarter or of a year.

The outward FDI stock is the value of the resident investors' equity in and net loans to enterprises in foreign economies.

6 0
3 years ago
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