Answer:
B) Using a market multiple assumes that the target company is mispriced, while comparable companies are correctly priced.
Explanation:
Market Multiple, also known as trading multiples, is used to compare two financial measures, to determine the value of a company. It is another name for Price to Earnings Ratio (also called P/E Ratio).
Using the market multiple approach, investors can determine whether stocks in their portfolios will increase or decrease in price through the next term. Investors may then buy or sell stocks in order to maximize their expected gains calculated.
Answer:
The correct answer is option c.
Explanation:
Forlornistan is experiencing an economic downturn, the GDP has steadily declined, the employment rate is very low and the CPI is falling.
All these characteristics show that the economy is going through economic depression.
Depression refers to the situation in which an economy suffers a downturn in economic activities. It involves decrease in output level, price and employment rate.
Answer:
a. harmony will produce chicken and singsong will catch fish.
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
In singsong: 1f = 2c
The opportunity cost of producing 1 fish = 2c / 1 = 2c
The opportunity cost of producing 1 chicken = 1f / 2 = 0.5f
In harmony: 1f = 4c
The opportunity cost of producing 1 fish = 4c / 1 = 4c
The opportunity cost of producing 1 chicken = 1f / 4 = 0.25f
It can be seen that singsong has a lower opportunity cost in producing fish, so it should specialise in fish.
Harmony has a comparative advantage in producing chicken, so it should specialise in chicken.
I hope my answer helps you
The investor determines that a credit loss exists on the investment
Answer:
The correct answer is letter "D": Andy Friese was formerly employed at Reliable Auto. He has been out of work for six months, and he gave up looking for work over a month ago.
Explanation:
A discouraged worker can be defined as an individual who is not in the labor force, who is willing and capable to join it but has been unemployed since the last time that person had a job for more than 12 months and who has stopped looking for a job somewhere in the past 4 weeks.
Discouraged workers are mainly those that cannot find a job suitable for their skills and who are not willing to secure a job where their skills would be underappreciated. Then, <em>as Andy has given up looking for a job in the past 4 weeks and is not currently in the labor force, he can be considered a discouraged worker.</em>
