Answer:
Trading
Explanation:
Buying and selling stocks is another term for trading because it is a system of "give and get"
Answer:
$3,484.85
Explanation:
Calculation to determine tax-equivalent value
Using this formula
Tax-equivalent value=Nont-taxable amount/(1-Tax rate)
Let plug in the formula
Tax-equivalent value=$2,300/(1-.34)
Tax-equivalent value=$2,300/.66
Tax-equivalent value=$3,484.85
Therefore A nontaxable employee benefit with a value of $2,300 would have a tax-equivalent value of:$3,484.85
Answer: $1381400
Explanation:
From the question, we are informed that Company A is considering a merger with Company B and that A has 43,000 shares outstanding at a market price of $32 a share while B has 12,800 shares outstanding priced at $44 a share and the merger is expected to create $5,400 of synergy.
The total value of the merged firm will be:
= (43,000 × $32) + (12,800 × $44) + $5,400 - $563,200
= $1,376,000 + $563,200 + $5,400 - $563,200
= $1,944,600 - $563,200
= $1,381,400
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
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Answer:
The correct answer is option B.
Explanation:
In 2017, Lynx earned an accounting profit of $3 million.
Lynx's production facilities might have also been used to produce components for mobile phones, which would have generated $2 million in revenues and saved the company $500,000 in production costs.
The accounting profit involves only explicit costs. While economic profit includes both explicit as well as implicit cost.
Here, the implicit cost is the opportunity cost of producing toys components. Lynx could have earned greater profit if it produced components for mobile phone and also could have saved cost of production.
Economic profit
= accounting profit - implicit cost
= $3 million - ($2 million + $500,000)
= $3 million - $2.5 million
= $500,000
So, Lynx had an economic profit of $500,000.
