Answer:
The stock market tends to value diversified companies at less than their break-up value.
Explanation:
Conglomerate discount is only applicable to large, highly diversified business entities and it basically arises as a result of business analysts having difficulty finding an appropriate way to value group of businesses with complex financial statements.
Simply stated, the expression "conglomerate discount" means that the stock market tends to value diversified companies at less than their break-up value.
Hence, when a vast array of businesses aren't performing optimally as the overall conglomerate or there are issues with respect to its core values and financial statements, business analyst may have to apply the conglomerate discount concept.
In order to calculate the conglomerate discount, business experts add up various estimations of the intrinsic values associated with the respective subsidiary firms in a conglomerate and lastly, the market capitalization of the conglomerate is subtracted from that sum. Intrinsic value refers to a measure of the underlying value of a firm and its cash inflow.
Also, it's worthy of note that the sum of the various estimations is typically greater than the conglomerate stock values.
An increase in a consumer's income will increase the slope of the consumer's budget line.
<h3>
What is a budget line?</h3>
- The budget line sometimes referred to as the budget restriction, displays every combination of two commodities that a client is able to afford at the current market pricing and within their specific income range.
- The budget line is a graphical representation of every combination of the two commodities that may be purchased using the given income and cost, with the price of each combination being equal to the customer's monetary earnings.
- It's critical to remember that the slope of the budget line corresponds to the cost-to-volume ratio of two commodities.
- The slope of the budgetary restriction is very significant.
<h3>Increase in the slope of the budget line:</h3>
- A rise in income allows consumers to purchase more of both goods, which causes the budget line to shift outward, or to the right (slope increases).
Therefore, an increase in a consumer's income will increase the slope of the consumer's budget line.
Know more about the slope of the budget line here:
brainly.com/question/14524034
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Answer:
High traffic
Explanation:
Higher traffic means more visibility, more visibility means more customers.