Answer:
B) Using a market multiple assumes that the target company is mispriced, while comparable companies are correctly priced.
Explanation:
Market Multiple, also known as trading multiples, is used to compare two financial measures, to determine the value of a company. It is another name for Price to Earnings Ratio (also called P/E Ratio).
Using the market multiple approach, investors can determine whether stocks in their portfolios will increase or decrease in price through the next term. Investors may then buy or sell stocks in order to maximize their expected gains calculated.
Answer:
Total return equals earnings multiplied by the dividend payout rate.
Explanation:
Total return is calculated as appreciation of price plus dividend paid, divided by the original price of the stock.
The income gained on a stock is the increase in its value along with dividend that is paid out. This is compared to the original price (denominator) to determine how much returns is realised on the stock.
Mathematically
Returns= {(New price- Old price) + Dividend} ÷ Old price
So the statement total return equals earnings multiplied by the dividend payout rate is false
Answer:
0.65 per share
Explanation:
Calculate weighted average share
Date Weighted average share
Jan 1 200*1.05*2/12 35
Mar 1 (200-24)*1.05*4/12 61.6
July 1 184.80*3/12 46.2
Oct 1 188.80*3/12 47.2
Total 190
Earning per share = (150-27)/190 = 0.65 per share
<span>product mix
Product mix, also known as product assortment, is the total number of product lines that a company offers to its customers. The product lines may range from one to many, and the company may have many products under the same product line as well.</span>
Answer: (A) List the account names and numbers of the business.
Explanation:
The chart of the account is basically a listing of name of an account in which the company identified availability for the recording transaction in the general ledger. The company has high flexibility for tailor its both chart of account and ledger for its need and including accounts according to its particular needs.
The charts of the accounts has large and complex as company itself. The organization chart properly serve the outline for the accounting for the chart of account and the number of business.
