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Sav [38]
3 years ago
12

Use the following information for ECE incorporated: Assets $200 million Shareholder Equity $100 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: Group of answer choices
Business
1 answer:
krek1111 [17]3 years ago
4 0

Answer:

6%

Explanation:

Calculation for ECE's market-to-book ratio

Using this formula

Market-to-book ratio = (MV Equity)/(BV Equity)

Let plug in the formula

Market-to-book ratio = ($24 x 25 million)/100 million

Market-to-book ratio = 6%

Therefore ECE's market-to-book ratio is closest to 6%

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Match each of the following terms with their definition - Before-tax cost of debt - Cost of preferred stock - Cost of Common Sto
fomenos

Answer:

Before-tax cost of debt ⇒ A. The interest rate the firm must pay on new long-term borrowing.

This refers to the interest rate that a firm will pay on long term borrowing as compensation to the lenders for lending the company some funds.

Cost of preferred stock ⇒ C. rate of return investors require based on the preferred stock dividend.

The cost of the preferred stock is the rate of the preferred dividend that investors require they are paid every year if dividends can be paid and sometimes even when it cannot.

Cost of Common Stock ⇒ B. the rate of return on retained earnings, and adjusted for flotation costs .

Commons stock costs is the required return on the retained earnings of a company.

WACC ⇒  D. the average cost of raising new financing.

Weighted Average Cost of Capital (WACC) represents the total cost of raising capital for the company as it incorporates the costs of debt, preferred stock and common stock.

3 0
3 years ago
Internal information provides an understanding of factors outside of the organization
svp [43]

Answer:

false

Explanation:

Internal information is the information developed from activities that occur within the organization.

Definition

4 0
3 years ago
. How does analyzing fixed and variable costs help you to set a sale price that will generate profit? 2. How is profit affected
ELEN [110]

Answer:

1. Apart from helping to know the average cost of a product, analyzing fixed and variable cost will help to derive the break even point.

2. Profit will go down

Explanation:

1. The size of the selling price and the variable cost determine contribution per unit of a product. Contribution per unit is Price minus variable cost. This shows the  contribution of sales revenue towards covering the fixed cost of a product.

2. Relevant range is the estimated or budgeted activity level which defines a business volume of production or operation, it is both maximum and minimum threshold within which the entity must operate to expect certain level of cost and revenue.

Sometimes fixed costs are fixed within a relevant range of activities and outside such range, fixed cost may become variable, which will all things being equal impact negatively on the price.

Also, within relevant range volume discount may be achieved and outside such range, this may be forfeited which, will also reduce profit all things being equal.

4 0
3 years ago
Camille is at the candy store with her grandmother, who offers to buy her $6 worth of candy. if lollipops are $1 each and candy
Novosadov [1.4K]
6 lollipops.
3 candy bars.
1 candy bar and 4 lollipops.
2 candy bars and 2 lollipops.
6 0
3 years ago
Three commonly used productivity variables are: quality, external elements, and precise units of measure. labor, capital, and ma
Bingel [31]

Answer:

The correct answer is letter "B": labor, capital, and management.

Explanation:

<em>Labor, capital </em>and <em>management</em> are the three variables mostly used to measure productivity. Labor refers to the staff who are responsible for doing all of the physical and mental tasks that keep a company going.

Capital refers to the buildings, machinery, and tools used in the manufacturing process. It also involves talking about intellectual capital, which is the technical expertise that a company acquires over time.

Management is the development factor that connects capital and labor together. Managers incorporate innovation and creativity in using the other factors that help to create a successful company.

8 0
3 years ago
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