Answer: The P/E multiple and EVA approach and their use to value common stock.
P/E multiple: The term used for price/earnings multiple reflects the market price of a stock as the times of earnings per share of that company. It determines the investor's willingness towards the current market price of the stock.
Economic value added(EVA): this approach is a measure to evaluate a company stock based on economic value, it has added at a specified time. It considers the opportunity cost of capital invested in the business and the next operating profit generated by the business.
Explanation: The P/E multiple is the basis to analyze the stock price with the earnings so that the appropriate value of a stock is estimated.
The P/E approach can be used as a starting point in stock valuation. If a stock's P/E ratio is well above its industry average and if the stock's growth potential and risk are similar to other firms in the industry, the stock's price may be too high. To estimate a ball-park value multiply the firm's EPS by the industry average P/E ratio.
An alternative approach is based on the concept of Economic Value Added (EVA). Remember, EVA = Equity(ROE - rs). Companies increase their EVA by investing in projects that provide shareholders with returns greater than the cost of capital. When you purchase a firm's stock, you receive more than just the book value of equity—you also receive a claim on all future value that is created by the firm's managers.
I think it is king maybe ☺
The margin would be 50% for the 100%
Answer:
The correct answer is letter "C": Economical.
Explanation:
Economical phrases are objective clear phrases that convey a clear meaning. In the segment:
<em>I see that there appears to be an absolutely unfamiliar potential client requesting to converse with you in the upcoming afternoon interval. Would you prefer that I reject his request because you are already experiencing an overload of professional work demands?
</em>
We can identify redundancy, use of exuberance and words that are added without providing more information to the message. Business messages need to be straight-to-the-point so the recipient will not misunderstand what is intended to be said.