Answer:
(a) $61.11
(b) $54.44
Explanation:
1)
Value of Stock = Benchmark price-sales ratio × Stock's sales
= 5.5 × 1,500,000
= $8,250,000
Thus,
Price of stock = Value of Stock ÷ shares outstanding
= 8,250,000 ÷ 135,000
= $61.11
Thus, I would pay $61.11 for the stock.
2)
Value of Stock = Benchmark price-sales ratio × Stock's sales
= 4.9 × 1,500,000
= $7,350,000
Thus,
Price of stock = Value of Stock ÷ shares outstanding
= $7,350,000 ÷ 135,000
= $54.44
Thus, I would pay $54.44 for the stock.
Answer: Ambush Marketing
Explanation:
The mask company is engaged in Ambush marketing in the Olympics event.
Ambush marketing is a marketing technique that businesses use to give the public an impression that they are sponsoring an event when they aren't.
Answer:
Raise taxes
Explanation:
This will help reduce the amount of money in circulation because during recession money loses its value due to large amount of money in circulation
