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3 years ago

Knowledge check what are the possible weaknesses of this peer approach to valuation?

Business

1 answer:

kolbaska11 [484]3 years ago

7 0

Answer:

The growth which is estimated is wrong.

Explanation:

The Prospective price to earning ratio P/E multiples are calculated using future earnings. In that way, they can be dramatically wrong. Relative valuation is quick and easy. It compares industry peer.

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Howat Corporation earned $360,000 during a period when it had an average of 100,000 shares of common stock outstanding. The comm

kari74 [83]

Answer: Yes they are.

Explanation:

A warrant will be dilutive if it causes the share price of a company to reduce in value when it is exercised and converted into common stock.

The warrant in this scenario will dilute the share value because it is to be exercised at a price that is lower than the current market price of the stock so when it is added to the outstanding shares, it will reduce the market value and dilute the shares.

8 0

3 years ago

Marketers selling milk, bread, and other consumer staples know most customers do not spend much time searching or comparing alte

ivanzaharov [21]

The answer is convenience.

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3 years ago

The owners of a corporation are the . The primary goal of the corporate management team is to the shareholders’ wealth by the ov

AlexFokin [52]

Answer:

Total wealth = $7,500

Explanation:

The primary goal of financial management is to increase and maximize the wealth of the shareholders of the corporation.

This wealth is measured and represented by the share price, which is the measured of how much the company is worth at any time.

The higher the share price , hence the higher the value of the company and the higher the wealth of the shareholder.

Wilson's total wealth will be equal to the share price multiplied by the number of units

Total wealth = $37.50 per share × 200

= $7,500

Total wealth = $7,500

8 0

3 years ago

At December 31, 2017, Crane Company had 600,000 shares of common stock issued and outstanding, 400,000 of which had been issued

never [62]

Answer:

Sarasota’s earnings per common share is $2.82

Explanation:

Earning per share is the measurement of earning attributed to the common stockholders of the company for each share of the company.

Number of outstanding shares = 400,000

Issued during the year = 200,000

Total outstanding shares = 400,000 + 200,000 = 600,000 shares

Net income for the year = $2,070,000

Earning per share = ( Net income - Preferred Dividend ) / Number of outstanding shares

Earning per share = ( $2,070,000 - $380,000 ) / 600,000 shares = $1,690,000 / 600,000 shares = $2.82 per share

4 0

4 years ago

Why is the consumer considered "king" in a capitalist economy?

amm1812

The idea is that the success of any company depends on the consumer: the price and quality of the product determines how much money the firm will make. In this sense, the consumer organically selects the best companies by spending money on those companies, and in doing so is "king" because consumers determine which companies succeed and fail.

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4 years ago

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