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3 years ago

If you were reviewing a Financial company such as JPMorgan Chase, which of the following metrics is most relevant?

Business

1 answer:

Elena L [17]3 years ago

7 0

Answer: A) Net Interest Margin.

Explanation:

JPMorgan Chase as a financial company would not deal with actual inventory so the Days sales outstanding is not a relevant measure. Neither is the SSS as the company is not a retail chain.

The relevant metric would be the Net Interest Margin which is used to measure the difference between the interest income that a bank or similar financial institution makes vs the interest payments that the company will pay out to its lenders.

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In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five y

svlad2 [7]

Answer:

Stock Price in 5 years: $97.94. Stock Price Today: $55.575

Explanation:

A pay-out ratio is computed by dividing dividends per share over earnings per share. Meanwhile, PE or Price-Earnings Ratio is computed by dividing the market value of stocks over earnings per share. Thus, using the pay-out ratio formula, the earnings per share is 2.925 ($1.17/40%) and using the PE ratio formula, the market price of stocks today is $55.575 (19 x 2.925). After 5 years, multiplying 1.17 and 12% rate raised to the 5th power, the dividend will amount to $5.1548. Using pay-out ratio, earnings per share is 5.1548 ($2.0619/40%) and the market price of stock after 5 years is $97.94 ($5.1548 x 19).

3 0

3 years ago

In which business stage do you decide wether a business opportunity is a god fit for you personally

Kaylis [27]

Identify.

In the identify stage, you will determine if the opportunity fits your skills, interests, and goals.

4 0

3 years ago

During the second quarter of the year, Wallace Enterprises received $30,000 from customers in exchange for providing electronic

SSSSS [86.1K]

Answer:

On an income statement, the company would declare c. $21,000 expenses

Explanation:

Wallace Enterprises received $30,000 from customers in exchange for providing electronic components. Income from the exchange was $30,000

During the second quarter of the year, total expense = supplies expense + interest expenses + wages expense = $5,000 + $1,000 + $15,000 = $21,000

Income from the exchange - total expense = $30,000 - $21,000 = $9,000>0

The company recognizes gain $9,000.

On an income statement, the company would declare $21,000 expenses

5 0

3 years ago

If the exchange rate for canadian and u.s. dollars is 0.82777 to 1, this implies that 3 canadian dollars will buy ____ worth of

Delvig [45]

0.82777 Canadian dollars = 1 US dollars
1 Canadian dollar = (0.82777 /1.000) US dollars
3 Canadian dollars = ((0.82777 /1.000) x 3) = $2.48331

8 0

3 years ago

Kingsbury Manufacturing has net sales revenue of $850,000, cost of goods sold of $344,600, and all other expenses of $328,300. T

gladu [14]

Answer:

56.46%

Explanation:

The computation of the gross profit percentage is shown below

Gross profit percentage is

= (Sales - cost of goods sold) ÷ (Sales) × 100

where,

Sales is $850,000

And, the cost of goods sold is $344,600

Now placing these values to the above formula

So, the gross profit percentage is

= ($850,000 - $344,600) ÷ ($850,000) × 100

= $505,400 ÷ $850,000 × 100

= 56.46%

8 0

3 years ago