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Ghella [55]
2 years ago
8

Market value ratios provide management with an indication of how investors view the firm's past performance and especially its f

uture prospects.
a. True
b. False
Business
1 answer:
Naya [18.7K]2 years ago
7 0

Answer:

a. True

Explanation:

Market value ratios can be defined as a financial metrics used by an organization to measure the current share price (economic status) of the organization's stock that is held publicly.

Some examples of the commonly used market value ratios includes;

- Market value per share.

- Price/cash ratio.

- Book value per share.

- Earnings per share.

- Market/Book ratio.

- Price/Earnings ratio.

- Dividend yields.

Basically, the market value ratios are adopted by current and potential investors of a business firm so as to determine whether or not the firm's shares are underpriced, priced fairly or overpriced.

Hence, market value ratios provide management with an indication of how investors view the firm's past performance and especially its future prospects.

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In the old Merck compensation system, if the salary line formula is: control point = $1544 + $4.72*Hay point. How much will a mi
Alekssandra [29.7K]

Answer:

<u>A mid-level manager will get $5251.2 salary.</u>

Explanation:

Control Point = 1544 + 4.72 x Hay Point

=1544 + 4.72 x 600

= $ 4376 which is the mid-point of salary range in the market.

120% compa ratio means the actual salary given out is (120/100) times the market mid-point

Hence,

Actual Salary = ( 120 / 100 ) x 4376

= $ 5251.2

6 0
3 years ago
The situation in which a person places greater value on a good as fewer and fewer people possess it is called the
Phantasy [73]

Answer:

The correct answer is: Snob effect.

Explanation:

The Snob effect is a phenomenon that tries to explain why the demand for a good or service increases in the high-income sector while it decreases substantially in the low-income sector. This scenario is created when people need access to rare or exclusive goods or services.

6 0
3 years ago
Jamie earned a raise in pay when he finished the training for the Technician 2 position. He will receive another raise when he f
coldgirl [10]

Answer: Structured compensation program

Explanation: In a structured compensation program the company structures the pay of employees on the basis of a predetermined criteria. The abilities needed to get promotion in such structure could be fixed on the basis of time period served or any other such criteria.

In the given case, Jamie gets promotion at every stage by passing a certain test. Thus, we can conclude that the company is performing structured program.

5 0
3 years ago
The first part of setting strategic direction for an organization is to analyze the external and internal environments by prepar
ivanzaharov [21]

Answer:

Vision Statement

Explanation:

The first part of setting strategic direction for an organization is to analyze the external and internal environments by preparing a SWOT {Strengths , Weakness , Opportunities , and Threats } analysis. Once the SWOT is complete , the next step is to create a clear and compelling statement describing the inspirational long-term desired change resulting from an organization's work , called <u>Vision Statement.</u>

Vision Statement is a important point in strategical  planning. It tells what an organization intended to achieve or we can say it highlight the objective of the organization .

Vision Statement should we s<u>hort , simple and clearly specified.</u> It plays an i<em>mportant role</em> in an organization .    

3 0
3 years ago
May 1, 2021, Bibby Company had beginning inventory consisting of 200 units with a unit cost of $7. During May, the company purch
Umnica [9.8K]

Answer:

$7.38

Explanation:

The average cost method recalculates a new cost per unit with each and every purchase made. This new costs would then be used to calculate the costs of goods sold and inventory value.

Average cost per unit = Total Costs ÷ Units available for sale

                                    = (200 x  $7 + 800 x $7 + 600  x $8) ÷ 1,600

                                    = $7.375 or $7.38

The average cost per unit for May is $7.38

4 0
3 years ago
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