Market value ratios indicate how the common stock of a company is assessed in the capital market. The important market value ratios are Book value per share, earnings per share, market-to-book ratio, price-earnings ratio, and dividend yield.
<h3>Market Value Ratios</h3>
Book value per share = Common Equity/No of shares outstanding
= $46m / 20m
= $2.30
Earnings per share = Net Income/No of shares outstanding { where net income = retained earnings + dividends = 10.80 + 3.20 = $14m}
=$14m / 20m
= $0.7 per share
Market-to-book ratio = Market value per share/Book value per share
= $8.90 / $2.30
=3.87 times
Price-earnings ratio = Market price per share/Earnings per share
$8.90 / $0.7
=12.71 times.
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Answer:
Explanation:
<u><em>A) A temporary increase in government purchases</em></u>
Savings would be used decreasing them. which leads to the government implementing higher taxes. <u>The output will stay the same while the Real Interest and the price level would increase</u>.
<u><em>B) A reduction in expected inflation</em></u>
This provokes more money demand. At the same time, the <u>money price level goes down</u>. <u>The output and the Real Interest will remain at the same level.</u>
<u><em>C) A temporary increase in labor supply</em></u>
The more jobs, the more the people have more money. Interest rate will decrease and money demand will increase. <u>The output would increase while the Real Interest and the price level would drop.</u>
<u><em>D) An increase in the interest rate paid on money</em></u>
Under this scenario, there will be a higher demand for money. If the nominal supply of money remains constant, the <u>price level would decrease</u>. <u>The output will remain the same as well as the Real Interest.</u>
Answer:
<u>The correct answer is that the cost of the ending inventory using the retail inventory method is US$ 100,962</u>
Explanation:
Wall-to-Wall Records
Cost Retail
Beginning Inventory $ 48,000 $ 70,000
Purchases $ 210,000 $ 390,000
Cost of Goods Available for Sale $ 258,000 $ 460,000
Cost to Retail Ratio
= $ 258,000 ÷ $ 460,000
= 0.5609 = 56.09%
Cost Retail
Cost of Goods Available for Sale $ 258,000 $ 460,000
− Sales $ 280,000
Ending Inventory $ 180,000
× Cost to Retail Ratio 0.5609
<u>Ending Inventory $ 100,962 </u>
Answer:
A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best-performers in the industry if the company's management team fails to:_______.
5. establish production facilities in all 4 geographic regions, produce and market branded footwear with a 5-star or higher S/Q rating, and achieve global market share leadership in both private-label and branded footwear.
Explanation:
The U.S. market is an important market with global reach and image which a U.S. based company cannot neglect. So, establishing production facilities in all 4 geographic regions will help the company to achieve higher U.S. market share and enhance its domestic and global image.
Market branded footwear companies like Nike, Adidas, Jordan, Reebok, etc., are already competing with about 5 others in the global market for footwear. For a company to belong to their class, it must achieve what they have already achieved, especially 5-star or higher S/Q rating.
The Business Strategy Gaming (BSG) is a rating consumer group that "rates the styling and quality of the footwear of all competitors and assigns a styling-quality or S/Q rating of 0 to 10 stars to each company's branded footwear offerings." According to medium.com, to improve BSG rating, "it is important for each to aim for at least 20% market share in each and every segment. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company."