Firm’s market to book value ratio can be calculated by dividing the market value of the firm’s equity by the book value of the fir’s equity.
Market value of the firm’s equity = market value of current assets + market value of book value – market value of firm’s debt
= $10 million + $90 million – 50 million
= $50 million
Book value of firm’s equity = Book value of current assets + book value of fixed assets – book value of liabilities
= $10 million + $60 million – 40 million
= $30 million
Market to book value ratio = $50 million/ 30 million
= 1.67 times
People often have property rights. we can expect economic growth to increase due to an upward movement along the production function.
<h3> </h3><h3>What is property rights?
</h3>
- Property rights is known to be the theoretical and legal ownership of some specific resources and how one can use them.
In economics, property rights is known to be the basis for all kinds of market exchange, and the sharing of property rights in a society influences the efficiency of resource use.
Conclusively, the stronger or the increase in the set of property rights, the more increase the zeal to work, save, and invest, and this in turn leads to a more better operation of the economy system.
See options below
decrease; downward movement along
increase; upward movement along
decrease; downward shift of the
decrease; movement up along
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Answer:
The correct answer is option B.
Explanation:
Profit maximization refers to the situation when a firm is able to maximize the total profit that it could earn through the production of goods and services.
The total profit is maximized when the marginal profit is zero or when the marginal revenue is equal to marginal cost. The marginal profit is the difference between marginal revenue and marginal cost.
If the marginal revenue is greater than the marginal cost the firm should increase production till both are equal.
In case, marginal revenue is less than the marginal cost the firm should stop producing more and reduce production till both are equal.
The answer is B. resources are scarce.
Qualification of the audit report.
A refusal by a lawyer to furnish information related to litigation included in the letter of inquiry is likely to result in Qualification of the audit report.
<h3>What is Qualification of the audit report?</h3>
- When the scope of the auditor's job is limited or when there is a difference of opinion with management on the application, acceptability, or sufficiency of accounting policies, the auditor's report is qualified.
- For auditors, a report must qualify an issue as material or as economically worthwhile.
<h3>What is an audit report with qualified opinion?</h3>
- An auditor's qualified opinion states that, with the exception of a particular area, the financials are fairly reported.
- A qualified opinion is typically still acceptable to lenders, creditors, and investors, unlike an unfavorable or disclaimer of opinion.
<h3>What exactly is qualified reporting?</h3>
- An audit report that has qualifications is one that is not error-free.
- The auditor may qualify his report if he has any concerns about particular processes indicated in the financial statements.
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