Answer:
b. $2.50 per share undervalued
Explanation:
If the Company A major competitor has Share Price / EPS of 15X. Then, it means that the share price of company A should be = EPS * Competitor Share Price / EPS = $1.50 * 15 = $22.50
But, the share price of company A is $20.
So, we concluded Company A shares are Undervalued by $2,50 ($22.50 - $20).
Answer:
Current ratio: relationship between short-term assets and short-term liabilities
acid-test ratio it removes the inventory from the above calculation to check the presure to sale from the firm
(3)
We first, solve for the accounts receivables turnover which is the times we collect the receivables and then, we divide over the days in a year to know the days outstanding
(4)
To calculate the times the inventory was sold during the period
(5)
We first, solve for the inventory turnover which is the times we sale the goods and then, we divide over the days in a year to know the days it takes to leave the inventory
(6)
Relationship between own fund and borrowing
above one it means the company is leverage for third parties more than own fund
(7)
we make this division of the earning before interest and taxes against our interest expense.
This compares the operating income against the interest expense we got for borrowing below zero is a serious problem as the company falls to meet the interest of his debt
(8)
(9)
How the assets were managed to create sales for the firm
(10)
This will let us know how well we manage our assets as it link the income with the asset used to generated
(11)
This will let us know how much we generate from the investment made.
Explanation:
Answer:
d. Gain on sale of land
Explanation:
When using the indirect method in calculating net cash flow from operating activities, the net income is adjusted by the following items :
- Non-Cash flow items included in net income
- Changes in Working Capital items in net income.
From the choices given only gain from sale on land which is an income, has to be removed from net income to reach a cash flow figure.
Answer:
NPV $25,200
Explanation:
The computation of the net present value is shown below
<u>Years Cash flow Discount PV
</u>
0 -$430,000 1 -$430,000
1 $180,000 0.909 $163,620
2 $120,000 0.826 $99,120
3 $100,000 0.751 $75,100
4 $90,000 0.683 $61,470
5 $90,000 0.621 $55,890
NPV $25,200
To figure this out, we need to write down some rules/formulas.
Max works 40 hours per week. There are 52 weeks within a year. He made $25,480 last year, and now we're looking for how much he made per hour.
Since we have 52 weeks in a year, divide 25,480 by 52 to get how much he made per week. Once we do that, divide that quotient by 40 to get how much he made per hour.
25,480/52 = 490.
He made $490 per week, but now we must divide by 40 to get how much he made per hour, since we have 40 hours.
490/40 = 12.25
Max made $12.25 per hour.
I hope this helps!