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:
B. The company's brand equity
Explanation:
Intangible assets lack a physical presence. They are assets that cannot be touched or seen. Intangible assets are contrasted by tangible assets, which include land, buildings, vehicles, plants, and machinery. Examples of intangible assets include patent brand names, trademarks, or and copyright.
Intangible assets have a use-life of more than one year. They can be created or acquired, just like tangible assets. From the list in the case, The company's cash reserves, company's plant and equipment, and company headquarters are tangible assets because they have a physical presence.
Answer:
The correct answer is option A.
Explanation:
A market outcome will be considered economically efficient if the marginal benefit earned from the last unit is equal to the marginal cost incurred in the production of the last unit while the economic surplus or the sum of consumer surplus and producer surplus is at maximum.
If the marginal cost and benefit are not equal then the outcome is said to inefficient. It means that either the resources are not being allocated efficiently or the production is not efficient.
Answer:
are still used by nations as a means of rewarding their friends and punishing their enemies
Explanation:
Trade barriers "are still used by nations as a means of rewarding their friends and punishing their enemies."
The above statement is based on the fact that trade barriers have been analyzed to be damaging and reduce the total economic advantage of the affected countries.
For example, the imposition of taxes on food imports and subsidies for farmers in advanced countries leads to overproduction and eventually dumping on world markets, thereby reducing the prices and affecting the developing countries' farmers.
It’s not for African Americans as a group even with higher levels of income and education.
