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oee [108]
3 years ago
12

TwitterMe, Inc., is a new company and currently has negative earnings. The company’s sales are $1,500,000 and there are 135,000

shares outstanding.
a. If the benchmark price-sales ratio for the company is 5.5, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. If the benchmark price-sales ratio for the company is 4.9, how much will you pay for the stock?
Business
1 answer:
Masteriza [31]3 years ago
7 0

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.

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alexandr1967 [171]

Answer:

Contain information developed in preparing briefing papers, reports and studies

Explanation:

In simple words, records can be defined as the documents that keep information that is developed and scripted over time. The information can be originated through experiences, actions or research etc.

Records depict past information which is considered to be important and might be used in future for some reference. Thus, from the above we can conclude that the correct option is 1.

7 0
3 years ago
Accounts payable, end of year $ 5,643 $ 9,588 Accounts receivable, net, end of year 21,325 16,438 Inventory, end of year 7,944 7
JulsSmile [24]

Answer:

(1) We have:

Current year cash conversion cycle = 46.03 days

Previous year cash conversion cycle = 28.88 days

(2) The company did NOT manage cash more effectively in the current year.

Explanation:

Cash conversion cycle (CCC) can be described as a metric that is employed to show the length of time, in days, that a company takes to convert inventory and resources into cash flows. The CCC can be calculated using the following formula:

Cash conversion cycle = Days inventory outstanding + Days Sales Outstanding - Days payable outstanding ............ (1)

Where:

Days inventory outstanding = (Ending inventory / Cost of goods sold) * 365

Days Sales Outstanding = (Ending accounts receivable / Net sales) * 365

Days payable outstanding = (Ending accounts payable / Cost of goods sold) * 365

(1) Use the information above to compute the number of days in the cash conversion cycle for each year

Using equation (1) above, we have:

For the Current year, we have:

Days inventory outstanding = (7,944 / 112,000) * 365 = 25.89 days

Days Sales Outstanding = (21,325 / 202,000) * 365 = 38.53 days

Days payable outstanding = (5,643 / 112,000) * 365 = 18.39 days

Therefore, we have:

Current year cash conversion cycle = 25.89 + 38.53 - 18.39 = 46.03 days

For the Previous year, we have:

Days inventory outstanding = (7,175 / 125,000) * 365 = 20.95 days

Days Sales Outstanding = (16,438 / 167,000) * 365 = 35.93 days

Days payable outstanding = (9,588 / 125,000) * 365 = 28.00 days

Therefore, we have:

Previous year cash conversion cycle = 20.95 + 35.93 - 28.00 = 28.88 days

(2) Did the company manage cash more effectively in the current year

Since the Current year cash conversion cycle of 46.03 days is greater than the Previous year cash conversion cycle of 28.88 days, this indicates that the company did NOT manage cash more effectively in the current year.

3 0
3 years ago
The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar
Lynna [10]

It should be noted that the relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior constitute a Social classes.

<h3>What is a Social classes?</h3>

Social classes  can be regarded as the society's relatively divisions which involves member that share similar values as well as behaviors.

Learn more about Social classes at;

brainly.com/question/1065123

4 0
2 years ago
A man purchased a magazine at the airport for $ 2.79 . The tax on the purchase was $ 0.15 .What is the tax rate at the​ airport?
lana66690 [7]

Answer:

Tax on the airport= 5.376%

Explanation:

The tax rate on the airport can be calculated from  the price of the magazine on the airport and tax which is on the magazine when purchasing from the airport.

Tax rate at the airport=(Tax on the Purchase)/(Price of magazine at which it is purchased)

Tax\ rate\ at\ the\ airport=\frac{\$0.15}{\$2.79}

Tax\ rate\ at\ the\ airport=0.05376

In percentage:

Tax on the airport= 0.05376*100

Tax on the airport= 5.376%

4 0
3 years ago
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nika2105 [10]

Answer:

The statement is TRUE. Time Hop was concerned with physical design

Explanation:

Tech giant, TimeHop was concerned about creating a workspace that was inviting and encouraged collaboration. Knowing that most of its employees would work odd hours, there was care taken to lighting choices and types of furniture. TimeHop was concerned with physical design.

The statement is true.

7 0
3 years ago
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