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valina [46]
3 years ago
9

Which of the following statements are correct regarding the method of valuation by comparables? (Choose 2). 1. A firm's market v

alue can be estimated by using the share price of any similar sized firm. 2. A firm's market value can be estimated by finding the share price of a similar firm and using that value. 3. A firm's market value can be estimated by multiplying its book value by the market/book ratio for a similar firm. 4. A firm's market value can be estimated by multiplying its earnings per share by the P/E ratio for a similar firm.
Business
1 answer:
natulia [17]3 years ago
5 0

Answer:

4. A firm's market value can be estimated by multiplying its earnings per share by the P/E ratio for a similar firm.

Explanation:

A firm's market value can be estimated by multiplying its earnings per share by the P/E ratio for a similar firm is the correct statement. The comparison method for valuation provides a noticeable value for the business which is based on the current worth of the business. This method is a very popular used approach because it is very simple and easy to determine and always current. The method refers that,  when company A sells at a 10 times P/E ratio and company B  has earnings of $2.50 per share then company B’s stock must be worth $25.00 per share.

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Is Informative listening a type of casual listening
Vlada [557]

Answer:

Yes.

Explanation:

<em>You are listening to gather intel on a particular individual or set of individuals.</em>

4 0
3 years ago
Select which of the ways that entrepreneurs improve the economy is being described:
8_murik_8 [283]

Answer: (B) Demand for products

Explanation:

 The demand for the products is basically refers to the process in which the amount of the specific products are get purchased for the particular price so that the one business organization increase their productivity and the other business meets its specific requirement.

There are basically five factors which determine the demand of products function in an organization are as follows:

  • Income of the buyer
  • Price
  • Customer choice
  • The actual price of the related other products
  • Future supply expectations

Therefore, Option (B) is correct.

4 0
3 years ago
The estimated expense for accounts that may not be collected is referred to as:
sashaice [31]

Answer: a bad debt expense

Explanation:

The estimated expense for accounts that may not be collected is referred to as. bad debt expense. Joyce Corp uses the percentage-of-receivables method to account for bad debt expense. Joyce determines that a customer account of $20,000 should be written off as uncollectible

3 0
2 years ago
Jilk Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $47,500. Assuming that the fixed monthly expense
JulsSmile [24]

Answer:

$36,070

Explanation:

Given that,

Contribution margin ratio = 61%

Fixed monthly expenses = $47,500

sales = $137,000

Contribution margin:

= Sales × Contribution margin ratio

= $137,000 × 61%

= $83,570

Net income = Contribution margin - Fixed monthly expenses

                    = $83,570 - $47,500

                    = $36,070

Therefore, the best estimate of the company's net operating income in a month is $36,070.

8 0
3 years ago
Mary's Baskets Company expects to manufacture and sell 24 comma 000 baskets in 2019 for $ 7 each. There are 2 comma 000 baskets
denis23 [38]

Answer:

The budgeted sales revenue is : $168,000

Explanation:

In 2019, as Mary's Basket Company has the opening Inventory balance of 2,000 baskets; projects to manufactures 24,000 baskets, plans to maintain ending inventory at $2,000 baskets without any work-in-process inventory; We have the baskets available for sales in the year of 2019 is:

  Actual Ending Balance of 2018 + Projected manufactured baskets during the year 2019 - Planned ending Balance of the year 2019 = 2,000 + 24,000 - 2,000 = 24,000

The unit price is projected at $7.

Thus, we have the projected sales revenue is:

  Projected Unit price x Projected baskets available for sales = 7 x 24,000 = $168,000

7 0
3 years ago
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