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Andru [333]
3 years ago
14

Which of the following is an inconsistency of using market multiples to determine value? A) Using a market multiple assumes that

the target company is correctly priced, while comparable companies are mispriced. B) Using a market multiple assumes that the target company is mispriced, while comparable companies are correctly priced. C) Using a market multiple assumes that all companies are mispriced. D) Using a market multiple assumes that the target company can be fully described by its summary performance measure.
Business
1 answer:
VikaD [51]3 years ago
6 0

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.

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one feature of a corporation is that it can continue indefinitely beyond the lives of individual managers and stockholders of th
Zarrin [17]

Answer:

One feature of a corporation is that it can continue indefinitely beyond the lives of individual managers and stockholders of the corporation.  This is called perpetual life or succession.

Explanation:

Perpetual life or succession of a corporation refers to the continuation of a corporation's or other organization's existence notwithstanding the death, bankruptcy, insanity, change in membership or exit from the business of any owner or member, or any transfer of ownership.  This makes the corporation to be a safer and more stable platform for investors.  The perpetual life of the corporation also raises the chances that the investors will receive returns on their money over an indefinite period of time.

8 0
3 years ago
What is the yield to maturity (YTM) on a share of Six Flags B $1.81 preferred stock if an investor buys the stock at the followi
Roman55 [17]

Answer:

Answer is given below.

Explanation:

Preferred stock yield = dividend/ stock price

a) dividend =$1.81 , stock price =$30

Preferred stock yield = $1.81/$30= 6.033%

b) dividend =$1.81 , stock price =$25

Preferred stock yield = $1.81/$25=7.24 %

8 0
3 years ago
In a mixed market economy, what is a typical way the government can reduce unemployment? The government can pay for projects to
Aleonysh [2.5K]

Answer

In a mixed market economy, the typical way the government can reduce unemployment is : The government can pay for projects to create work

Explanation

In a mixed market economy, part of the economy is left to the free market and part of it is managed by the government. In a mixed economy, private enterprise run most businesses and the government later intervene in areas like provision of public services( education, health care and waste control), and in the regulation (legal right to private property). Most modern economies are mixed where the means of production are shared between the private and public sectors.


8 0
3 years ago
Read 2 more answers
Dock Corporation makes two products from a common input. Joint processing costs up to the split-off point total $33,600 a year.
Alex Ar [27]

Answer:The minimum amount is the price that will give a profit of $3700

Explanation:

The minimum amount the company should accept for product X if it's to be sold at the split off point it's maximum amount they will earn as profit if they sales after further procession.

The total cost the company will incur if they process further it's the cost they incurred at the split off point and at further procession which equals ($16,800+$15,000) =$31,800

On sales after procession they will earn a price of $35500 which means a profit of $3700 this means the firm should sale product X at spilt off point for a price that will bring a minimum profit of $3700.

6 0
3 years ago
Team members can collaborate on ideas using telepresence. <br> a. True <br> b. False
Kisachek [45]
That statment is true
Telepresence is a tool that allow each team members to communicate with one another even though they're located far apart.
Actually,  if this tool is used correctly, it enhance team's capability to pay attention to a certain individual when he/he is talking about their ideas for the group
8 0
3 years ago
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