Answer:
(a) $61.11
(b) $54.44
Explanation:
1)
Value of Stock = Benchmark price-sales ratio × Stock's sales
= 5.5 × 1,500,000
= $8,250,000
Thus,
Price of stock = Value of Stock ÷ shares outstanding
= 8,250,000 ÷ 135,000
= $61.11
Thus, I would pay $61.11 for the stock.
2)
Value of Stock = Benchmark price-sales ratio × Stock's sales
= 4.9 × 1,500,000
= $7,350,000
Thus,
Price of stock = Value of Stock ÷ shares outstanding
= $7,350,000 ÷ 135,000
= $54.44
Thus, I would pay $54.44 for the stock.
Answer: indirect transfer using the venture capital firm.
Explanation:
The capital market works to transfer funds from those who have it (savers) to those who need it (borrowers).
There are three ways this happens:
- Direct transfer - Savers transfer the money to those who need it directly without the need for any intermediary. For instance, your uncle loaning you money to start a car wash.
- Indirectly through Investment bank - Investment banks take the money savers deposit with them and invest in people and businesses to create a return for the savers.
- Indirectly through financial intermediary - Intermediaries like Mutual funds, Commercial banks etc, get money from savers and invest in opportunities.
Indirect transfer using Venture capital firm is not one of these ways as it falls under Indirectly through financial intermediary.
Direct labor and indirect labor are recorded in work in Process Inventory and Factory Overhead. Option A is correct.
<h3>
What is indirect labor?</h3>
Indirect labor are expenses incurred during manufacturing process which are not directly, some logistics cost can be here.
Direct labor are charged directly in production such as cost of resources. They are recorded in the company overall spending called overhead cost.
Therefore, Direct labor and indirect labor are recorded in work in Process Inventory and Factory Overhead. Option A is correct.
Learn more on labour below
brainly.com/question/453055
#SPJ1
<span>shortage, upward:
A shortage is experienced because the the goods are sold more rapidly than they can be re-stock. The price increases once the shortage happens to slow down the demand, enabling the quantity supplied to attend the quantity demanded.</span>
Expensing the cost of copy paper when the paper is acquired is an example of .Cost constraint.
<h3>What is
Cost constraint?</h3>
A cost constraint in accounting occurs when it is excessively expensive to report specific information in the financial statements. The applicable accounting standards permit a reporting entity to forego the associated reporting where doing so would be prohibitively expensive. The purpose of enabling the cost constraint is to prevent firms from paying excessive expenditures to fulfill their financial reporting duties, especially when compared to the benefit received by readers of the financial statements.
Only certain requirements for financial reporting that are mentioned in the accounting standards are subject to the cost limitation. In all other instances, regardless of the underlying cost, financial information must be reported.
To learn more about Cost constraint from the given link:
brainly.com/question/21270823
#SPJ4
