Answer:
Answer to this question is b.46500
Explanation:
According to 28/36 guidelines, a household shall not spend more than 28% of its monthly income on housing expenses.
Applying the above rule, the monthly income of a household shall be calculated as follows:
28% x household monthly income=1085$
household monthly income=1085/28%=3875
Annual household income=3875 x 12=46500
Answer to this question is b.46500
The answer would be a. Have the ability to exercise significant influence over the operating and financial policies of the investee
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.
