The main purpose of price/sales multiple ratio is typically only for the purpose of valuation of firms having no earnings till the date of valuation. Therefore, the given statement holds true.
<h3>What is the significance of Price/Sales ratio?</h3>
Price/Sales ratio can be referred to or considered as a ratio that is used to determine the total sales made by the company without earning any profits over their sales at a given price.
Investors use this ratio in order to valuate a firm based on the sales they have made in multiples, however without earnings, that can prove to derive good investment returns in the future.
Therefore, the aforementioned statement regarding price/sales ratio holds true.
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Answer: <em>Internal consistency</em>
Explanation:
In discipline such as research and statistics, internal consistency is referred to as or known as typically or usually a measure that is based on correlations in between different variable and items particularly on a same test or maybe on sub-scale on the larger test. It tends to measure whether variables and items that measure same construct do produce the similar scores.
Answer:
$7.8
Explanation:
Variable costs = $504,000
Fixed costs = $392,000
Number of units produced = 84,000
Shipping charges = $4,500
Therefore, the variable cost per unit is calculated as follows:
= Variable costs ÷ Number of units produced
= $504,000 ÷ 84,000
= $6 per unit
Incremental fixed cost per unit (For 2,500):
= Shipping cost ÷ 2,500
= $4,500 ÷ 2,500
= $1.8 per unit
Therefore, the unit sales price will be the sum total of variable cost per unit and incremental fixed cost per unit for the shipping charges.
BEP (in sales price per unit):
= Variable cost per unit + incremental fixed cost per unit
= $6 + $1.8
= $7.8
Answer:
Public disclosure test
Explanation:
The public disclosure test refers to the fact that companies have to care about what the public thinks about them. Before people used to say that the public disclosure test was like having your life broadcasted by television; Are we acting properly? What would happen if our actions were made public?
Nowadays the public disclosure test is much more common because everyone has and uses a smartphone. Everything is public now, a video showing a truck illegal disposing hazardous waste material would go viral in minutes and the company's reputation would be destroyed.
