Answer:
Market/Book Ratio = 1.92 times
EV/EBITDA = 13.65 times
Explanation:
As for the information provided,
EBITDA = $1.794 billion
The value of common equity in books = $7.2 billion
Outstanding shares = 300 million
Share price per share = $46
Therefore, market value of common equity = $46
300 million
= $13.8 billion
Therefore, market/book ratio = $13.8 billion/$7.2 billion
= 1.9167 times
EV represents enterprise value which is the market value of equity + total debt - cash and cash equivalents
= $13.8 billion + $8.1 billion + $2.7 billion - 0.120 billion
= $24.48 billion
EV/EBITDA = $24.48 billion/$1.794 billion = 13.65 times
Answer:
Debit cash with $750,000; and credit Bond payable also with $750,000.
Explanation:
The journal entry will appear as follows:
<u>Date Details Dr ($) Cr ($) </u>
Jan. 1 Cash 750,000
Bond Payable 750,000
<u> </u><em><u> To record the issuance of bond. </u></em><u> </u>
Answer:
Comparative advantage
Explanation:
This concept of economics is comparative advantage that means one country has advantage of producing same product at lower cost than other. In this question China has comparative advantage over USA,
This may be due to different reasons.
1. Population of China is greater than USA, that is why employees are willing to work on low salaries in China as compared to salaries are offered in the US.
2. China is comparatively better in manufacturing industry as of with USA.
Accounting profits for the month = $4,000.
<h3>
What is production?</h3>
- In order to create anything for consumption, several material and immaterial inputs are combined during the production process.
- It is the process of producing output, a good or service that has value and enhances people's usefulness.
<h3>What are profits?</h3>
- The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
- It is equivalent to total income less total expenses, which includes both direct and indirect expenses.
<h3>
Solution -</h3>
Production happens 7 days a week.
Let,s tale 28 days in a month (4 weeks in a month)
50 items are produced every day and each costs $10.
50 × 10 = $500 (Daily sale)
Monthly sale = 500 × 28 = $14,000 (Monthly revenue)
Cost of production per month = $10,000.
Profit = 14,000 - 10,000 = $4,000.
Therefore, accounting profits for the month = $4,000.
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