1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Capital Chemicals Corp. recently faced a legal hassle following which many process operators resigned voluntarily. The company f
arlik [135]

Answer:

Dysfunctional turnover

Explanation:

Dysfunctional turnover refers to a situation where both highly qualified and efficient employees and less efficient employees resign form a current job. Dysfunctional turnover will make the business's normal activities suffer since it is usually considered normal and healthy for a business to get rid of inefficient workers, but when efficient workers also quit then who is left to carry on the business efficiently?

7 0
3 years ago
In addition to joint ownership ventures in china, intel has made substantial outlays in its own manufacturing and research facil
Rudik [331]
This is an example of "direct investment".
Direct investment alludes to an interest in a business venture in a nation or country other than the investor's's country intended to gain a controlling interest for the remote business undertaking and It is in this way recognized from an outside portfolio speculation by an idea of direct control.
3 0
3 years ago
Find a mutually profitable price for this acquisition, that is, a price such that, on average or in expectation, the owners of b
borishaifa [10]

Answer:

The lowest price the target's owners are willing to accept for the firm is 50

Explanation:

Solution

It is known that in the market there are two firms. while one is target, the other is equity firm.

The target has several projects  at hand bu the firm's worth is uncertain. it lies anywhere between 0 and 100.

Now,

The equity believes that the target is not well managed and with a good management it's value can be increased by 50%

Now,

The owner of the target does not know the firm's worth. so, it may be profitable  or the firm to accept the average outcome

Note: Kindly find an attached copy of the complete question for this example below.

Average outcome  0 + 100/2

= 100/2 = 50

Therefore, the lowest price the target's owners are willing to accept for the firm is 50

6 0
3 years ago
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an ann
Irina18 [472]

Answer:

the accounting rate of return is 18.75%

Explanation:

The computation of the accounting rate of return is as follows:

But before that following things need to be determined

Depreciation expense is

= ($540,000 - $195,000 )÷ (5 years)

= $69000

The Net income is

=  $170,250 - $69,000

= $101,250

Now the accounting rate of return is

= Net income ÷ Initial investment

= $101,250 ÷ $540,000

= 18.75%

hence, the accounting rate of return is 18.75%

3 0
3 years ago
Ayuda por favor, el que no sabe no responda o los reporto.​
devlian [24]

Answer:

english pls?? so i can answer

8 0
2 years ago
Other questions:
  • In September 2009 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.30/eu
    14·1 answer
  • Consider the following information.
    6·1 answer
  • NAME ONE ORGANIZATION THAT CAN HELP A NEW ENTREPRENEUR WITH FUNDING AND SKILL DEVELOPMENT SOUTH AFRICA
    15·1 answer
  • Identical products, as well as a large number of buyers and sellers, are characteristics of a ____________ market. In such marke
    5·1 answer
  • Consider a newly issued TIPS bond with a 3-year maturity, par value of $1,000, and coupon rate of 4.00%. Assume annual coupon pa
    12·1 answer
  • A division of a manufacturing company has a return on investment of 24%. The division has an opportunity to accept a project tha
    15·1 answer
  • Alpaca Corporation had revenues of $270,000 in its first year of operations. The company has not collected on $18,700 of its sal
    10·1 answer
  • Where is the main Federal Reserve Bank located?​
    7·2 answers
  • Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained,
    15·1 answer
  • __________is the name for the doctrine that holds that the manufacturer of a product has legal responsibilities to compensate th
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!