Market value ratios indicate how the common stock of a company is assessed in the capital market. The important market value ratios are Book value per share, earnings per share, market-to-book ratio, price-earnings ratio, and dividend yield.
<h3>Market Value Ratios</h3>
Book value per share = Common Equity/No of shares outstanding
= $46m / 20m
= $2.30
Earnings per share = Net Income/No of shares outstanding { where net income = retained earnings + dividends = 10.80 + 3.20 = $14m}
=$14m / 20m
= $0.7 per share
Market-to-book ratio = Market value per share/Book value per share
= $8.90 / $2.30
=3.87 times
Price-earnings ratio = Market price per share/Earnings per share
$8.90 / $0.7
=12.71 times.
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Answer: True
Explanation:
The decision to purchase a good or service or a customer benefit package is totally based on the price of that package or a good and on the benefits that a consumer will received after the purchase. A rational consumer will compare the price of a good with the perceived benefits. If the perceived benefits worth greater or equal to price then a consumer may purchase that product otherwise not. Therefore, a consumer's decision is largely depend upon the ratio of price and benefits.
Answer:
Jerry's gain on the sale= $28,500
Explanation:
When Jerry sells his interest in JJM to Lucia his basis ($54,250) is what he owes and will be taken out of the proceeds he will get for selling his interest in the company.
Therefore
Jerry's gain on the sale= Amount of sale- Jerry's basis
Jerry's gain on the sale= 82,750- 54,250
Jerry's gain on the sale= $28,500
The answer is the company should create customer involvement.
This means that the company should implement a type of marketing management known as customer involvement management, where the customers are involved from the product development processes to the product delivery to the customers’ hands.
This might involve asking them about the products they want to create, which might in turn cause the company to need to provide a high-level of customization in terms of the product that they are selling to the customer in order to satisfy them.
Answer,:
increase in operating income by $840,000
Explanation:
The computation is shown below:
Offer price per unit $60
Less: Variable costs per unit:
Direct materials ($20)
Direct labor ($14)
Variable overhead ($12)
Variable selling $0
Incremental profit per unit (a) $14
Units offered to sell (b) 60,000
Effect on Operating Income (Increase) (a × b) $840,000
Therefore, in the case when the special order is accepted, the effect on operating income would be increase by $840,000