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bagirrra123 [75]
3 years ago
5

Use the following information for ECE incorporated: Shareholder Equity $100 million Assets $200 million Sales $300 million Net I

ncome $15 million Interest Expense $2 million If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding, then ECE's market-to-book ratio is closest to:
Business
1 answer:
Zepler [3.9K]3 years ago
8 0

Answer:

6.0

Explanation:

Market to book ratio is calculated as ; Market capitalization / Net book value.

Where,

Market capitalization = Price per share × Total shares outstanding

= $24 × 25,000,000 shares

= $600,000,000

Then,

Net book value = Total assets - Total liabilities

= $200,000,000 - $100,000,000

= $100,000,000

Therefore,

Market to book ratio = $600,000,000 / $100,000,000

= 6.0

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Answer:

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Hence, the correct option is e as it defines the internal rate of return

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Read 2 more answers
Classify the following descriptions of constraints as bounds, limitations, requirements, proportional relationships, or balance
NeTakaya

Answer: Please refer to Explanation.

Explanation:

First the descriptions of Constraints shall.be described first to better understand the the questions.

Bounds are constraints where the value of a variable is not allowed to exceed a level.

Limitations are Constraints whereby there is only a limited number of the variable in question.

Requirements are constraints that refer to the minimum levels of a variable required.

Proportional Relationships are constraints that describe the relationship between Variables in terms of how they relate or are mixed and the like.

Balance Constraints refer to acheving a balance between Variables.

Classifying them therefore we have,

a. Each serving of chili should contain a quarter-pound of beef.

PROPORTIONAL RELATIONSHIPS

b. Customer demand for a cereal is not expected to exceed 800 boxes during the next month. BOUNDS.

c. The amount of cash available to invest in March is equal to the accounts receivable in February plus investment yields due on February 28. BALANCE CONSTRAINTS.

d. A can of premium nuts should have at least twice as many cashews as peanuts. PROPORTIONAL RELATIONSHIPS.

e. A warehouse has 3,500 units available to ship to customers. LIMITATIONS.

f. A call center needs at least 15 service representatives on Monday morning. REQUIREMENTS.

g. An ice cream manufacturer has 40 dozen fresh eggs at the start of the production shift. LIMITATIONS.

If you need any clarification do comment. Cheers.

7 0
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