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dimulka [17.4K]
3 years ago
11

Valuation Using an Income Statement Multiple JAKKS Pacific Inc., a toy manufacturer, reports net income for the recent twelve mo

nths of $14.73 million. JAKKS’ has 20.05 million shares outstanding. The industry average PE (using the trailing twelve months earnings) for its competitors is 22.17. Using this industry average PE, estimate the intrinsic value of JAKKS Pacific’s equity. Do not round until your final answer. Round answer to two decimal places.
Business
1 answer:
mash [69]3 years ago
5 0

Answer:

$16.27

Explanation:

For computing the intrinsic value, first we have to compute the earning per share which is shown below:

Earning per share = (Net income) ÷ (Number of shares outstanding)

                              = ($14.73 million) ÷ (20.05 million shares)

                              = 0.734

Now the intrinsic value would be

= Earning per share × P/E ratio

= 0.734 × 22.17

= $16.27

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The accounting and finance department performs processes such as creating financial statements, paying accounts payables, and co
noname [10]

Answer:

Business-facing processes

Explanation:

As we know that preparation of the financial statements is necessary for all the types of the organization whether small or large, private or public company, etc.  

The preparation of the financial statement is done by the accounting and finance department of the organization.  

The functions like creating financial statements, paying accounts payable, and collecting accounts receivables are done by business organizations so that no problem will exist in the future.  

Such types of business organization are called legal organization who are conducting their business activities in an ethically manner

4 0
3 years ago
Qd = 600 – 4p – 0.03M – 12 Pr + 5T + 6Pe + 1.5N Where Qd = quantity demanded for commodity A; P = price of commodity A; M = cons
NISA [10]

Answer:

A. It implies a fixed 600 units of commodity A will always be demanded without being influenced by any factor that determine the quantity demanded for good ‘A'.

B. 4. Yes.  The reason is that the price of good A is indirectly proportional to the quantity demanded for good ‘A'.

C. It implies that the quantity demanded for good ‘A' decreases by 0.03 as the consumer's income increases by $1. It is an inferior good.

d. Goods A and B are complements since the negative sign implies that the quantity demanded for good ‘A' decreases as the  price of related commodity (good ‘B') (Pr) increases. The interpretation of the the slope parameter for the price of good B is that the quantity demanded for good ‘A' decreases by 12 units as the price of related commodity (good ‘B') (Pr) increases by $1.

E. Yes, the algebraic signs on the slope parameters for T, Pe, and N are correct. The reason is that quantity demanded for good ‘A' will increase as each of T, Pe, and N increases.

f. Quantity demanded for good ‘A' is 2,374.

Explanation:

A. Interpret the intercept parameter in the generalized demand function.

In the generalized demand function, 600 represents the Interpret the intercept parameter.

This implies that 600 units is a fixed units of commodity A is demanded and this is not affected by any factors that determines the quantity demanded for good ‘A'.

Therefore, it implies 600 units of commodity A will always be demanded.

B. What is the value of the slope parameter for the price of good A? Does it have the correct algebraic sign? Why? 4. Yes since indirectly proportional.

From the generalized demand function, the value of the slope parameter for the price of good A is 4.

Yes, it has a the correct algebraic sign which is a minus sign.

The reason is that the price of good 'A' is indirectly proportional to the quantity demanded for good ‘A'.

C. Interpret the slope parameter for income for income. Is good ‘A' normal or inferior? Explain. 0.03. Since Em less than 1 it is normal goods

The slope parameter for income (M) is -0.03. This implies that the quantity demanded for good ‘A' decreases by 0.03 as the consumer's income increases by $1.

It is an inferior good because the quantity demanded for good ‘A' decreases as the consumer's income increases.

d. Are goods A and B substitutes or complements? Why? Interpret the slope parameter for the price of good B.

Since the slope parameter for price of related commodity (good ‘B') (Pr) is negative (i.e. –12), this implies that goods A and B are complements.

The negative sign implies that the quantity demanded for good ‘A' decreases as the  price of related commodity (good ‘B') (Pr) increases.

The interpretation of the the slope parameter for the price of good B is that the quantity demanded for good ‘A' decreases by 12 units as the price of related commodity (good ‘B') (Pr) increases by $1.

E. Are the algebraic signs on the slope parameters for T, Pe, and N correct? Explain

Yes, the algebraic signs on the slope parameters for T, Pe, and N are correct.

The reason is that quantity demanded for good ‘A' will increase as each of T, Pe, and N increases. This implies that there is a positive relationship between the quantity demanded for good ‘A' and each of T, Pe, and N.

f. Calculated the quantity demanded for good ‘A' when P = $15, M = $25000, Pr = $40, T = 6.5, Pe = $5.25 and N = 2000?

Given;

Qd = 600 – 4p – 0.03M – 12 Pr + 5T + 6Pe + 1.5N ............... (1)

Each of the value is then substituted into equation (1) and we then calculate as follows:

Qd = 600 - (4 * 15) - (0.03 * 25000) - (12 * 40) + (5 * 6.5) + (6 * 5.25) + (1.5 * 2000)

Qd = 2,374

5 0
3 years ago
A furniture company using accrual accounting purchased 20 sofas in November 2011. In December 2011, 8 of the 20 sofas were sold
kvasek [131]

Answer:

November 2011

Explanation:

Based on the information given if the company purchased 20 sofas in the month of November 2011 in which the company paid the amount of $3,000 for an advert that ran in the local newspaper in the same month of November 2011 which simply means that the month in which the advertising costs should be expensed is the month of NOVEMBER 2011 which is the month the company paid the amount of $3,000 for advertising in the local newspaper.

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3 years ago
the text presents three arguments in support of global advertising. what are those three arguments? multiple select question.
anyanavicka [17]

Informative, Persuasive, Reminder

Advertising that is informative raises people's awareness of brands, services, goods, and concepts. It can educate people about the features and benefits of new or established products as well as new programs and products.

Persuasive advertising works to change people's perceptions of a company or product and improve its image by trying to persuade them that its services or products are the best. Its objective is to convince customers to act and switch brands, try new products, or stick with one brand.

People are reminded about the need for a product or service or the features and benefits it will provide if they buy it quickly in reminder advertising.

To know more about advertising visit brainly.com/question/3163475?referrer=searchResults

#SPJ4

4 0
1 year ago
PLEASE HELP!
vesna_86 [32]
I would say the third sentence. Proper planning and supervision is of utmost importance while catering to the client. I say this because the word diligence means, careful and persistent work or effort. This shows that the work is carefully planned. That's my opinion and not a fact so don't trust this unless my reasoning convinces you.
7 0
3 years ago
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