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valina [46]
2 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]2 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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Explanation:

A DBA can be filed in order for a company to transact business under the company's domain name. This is especially helpful when your company name is not available as a domain name. For example, you may want to operate another business or website in addition to your existing one.

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3 years ago
Heidi opened her first checking account. she deposited $500 into the account. list four ways heidi can withdraw money from her c
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7 0
3 years ago
Read 2 more answers
Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a?
puteri [66]

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a controllable variance. Therefore, the option B holds true.

<h3>What is the significance of controllable variance?</h3>

Controllable variance can be referred to or considered as a variance that computes the difference between the actual quantity and the budgeted quantity sold or consumed by a firm in an economy. It can never be deficit, and is always in surplus of the budgeted amounts.

Therefore, the option B holds true and states regarding the significance of controllable variance.

Learn more about controllable variance here:

brainly.com/question/13985361

#SPJ4

The question seems to be incomplete. It has been added below for better reference.

Incurring actual indirect factory wages in excess of budgeted amounts for actual production results in a:

a. quantity variance

b. controllable variance

c. volume variance

d. rate variance

8 0
1 year ago
Lasley Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat
yKpoI14uk [10]

Answer:

CMR: 52% --> each dollar of sales generates 52 cent of contribution

VCR: 48% --> 48 cent per dollar of sales are cost

BEPu:    10,000 units will pay up the cost to purchasethis units and the fixed cost for the business.

BEPs: $ 250,000 in sales pay up both, fixed and varible operating cost.

Explanation:

selling price per hat:  $ 25

variable cost per hat: $  12

Contribution per unit $  13

Contribution Ratio:

13/25 = 0.52

Variable cost Ratio:

12/25 = 0.48

Fixed cost: 130,000

Break even point:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{130,000}{0.52} = Break\: Even\: Point_{dollars}

dollars of sales BEP: 250,000

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

\frac{130,000}{13} = Break\: Even\: Point_{units}

units sold to pay up variable and fixed cost: 10,000

4 0
3 years ago
Hokey Min's Kleen Karpet cleaned 75 rugs in October, consuming the following resources: Labor: Solvent Machine Rental: 520 hours
mezya [45]

Answer:

0.0075 rugs per dollar

Explanation:

(b)

Total labor cost:

= 520 hours × $15 per hour

= $7,800

Total solvent cost:

= 100 gallons × $5 per gallon

= $500

Total machine rental cost:

= 22 days × $75 per day

= $1,650

Multi-factor productivity:

= Number of rugs ÷ (Total labor cost + Total solvent cost + Total machine rental cost)

= 75 ÷ ($7,800 + $500 + $1,650)

= 75 ÷ $9,950

= 0.0075 rugs per dollar

8 0
3 years ago
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