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3 years ago

Which of the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO?

1 answer:

8 0

Answer: Under the given options, the following is not a qualitative technique an entrepreneur can use to evaluate the asking price of an LBO: Price-earnings ratio.

In this case all of the given options are qualitative except "Price-earning ratio".

A "price-earning ratio" denotes the quantitative relation for measuring a company's current share price proportional to its per-share earnings.

Therefore the correct option is (d)

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On January 1, 2019, Commercial Equipment Sales issued $ 29 comma 000 in bonds for $ 21 comma 700. These are sixminusyear bonds

maxonik [38]

Answer:

$2,058.33

Explanation:

bond's face value = $29,000

bond's market value = $21,700

interest rate = 10%

n = 6 x 2 coupons = 12

discount on bonds payable = $29,000 - $21,700 = $7,300

discount amortized per coupon payment = $7,300 / 12 = $608.33

total interest expense = ($29,000 x 10% x 1/2) + $608.33 = $1,450 + $608.33 = $2,058.33

the journal entry to record the coupon payment in June 30,2019:

Dr Interest expense 2,058.33

Cr Cash 1,450

Cr Discount on bonds payable 608.33

8 0

3 years ago

Control Inc. has no debt and a total market value of $100,000. EBIT are projected to be 6,000 if economic conditions are normal.

Zinaida [17]

Answer:

$3.12

Explanation:

For expansion:

EBT = EBIT - Interest

= [6,000 + (30% × 6,000)] - $0

= $7,800

Net income = EBT - Tax

= $7,800 - $0

= $7,800

Earning per share for the case of strong expansion period before any debt is issued:

= Net income ÷ Number of shares outstanding

= $7,800 ÷ 2,500

= $3.12

5 0

3 years ago

The type of production that does not concern itself with customer preferences, but instead focuses on making a large number of a

lord [1]

A type of production that focuses on making a large number of a few products rather than customer preferences is called mass production.

<h3>What is mass production?</h3>

Mass production is also referred to as continuous production or flow production and it can be defined as a type of production that focuses on manufacturing large quantities of a standardized product and it doesn't concern itself with customer preferences.

This ultimately implies that, mass production is mainly focused on making a large number of a few products rather than being focused on customer preferences. Also, the production is usually in a constant flow and automated by a mechanical process.

Read more on mass production here: brainly.com/question/744854

3 0

2 years ago

_____ is the marketing of goods and services to individuals and organizations for purposes other than personal consumption.

azamat

Answer:

C) Business marketing

Explanation:

There are two major types of business transactions: business to business (B2B) and business to consumers (B2C).

When a company engages in B2B transactions, they are selling their products or services to another business or individual that will resell them to individual consumers. For example, Nike sells shoes to Foot Locker, and then Foot Locker resells them to final consumers.

Businesses engaged in B2B transactions use specific marketing strategies aimed at their wholesale clients which usually vary from marketing strategies aimed at final consumers, e.g. offer discounts for buying in bulk.

3 0

4 years ago

Read 2 more answers

Peak performance sporting goods company has reported net income after taxes = $3,750,000, with 18,250,000 shares outstanding. ba

LiRa [457]

The basic earning per a share can be calculated by dividing the net income after taxes by the number of shares outstanding. Thus we have that the basic earning per share is 3,750,000/18,250,000 = .20547 dollars per share. The basic earning per share for peak performance is .205 dollars per share.

7 0

3 years ago