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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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Which of the following would be the best allocation base for the Assembly​ activity? A. Direct labor hours hours B. Number of or
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Answer:

The best allocation base for assembling activities costs are the number of parts actually assembled.

Since the number of parts is not an option int his question, the second best allocation base for the assembling process is A) direct labor hours.

If the process is highly automated, then the second best allocation base would be machine hours, but that isn't an option either.

8 0
3 years ago
Workplace diversity describes differences among workers in any of the following areas:
Andreyy89

Answer:salary

All

Explanation:

6 0
2 years ago
James owns a vacant property. By law, he can build the following building types, which generate a return on investment as listed
Dima020 [189]

Answer:

Office building

Explanation:

The formula to compute the return on investment is shown below:

Return on investment = Operating Income ÷ Average Operating Assets

It is a mix of operating income and the average operating assets through the return on investment could be computed

Since the return on investment is already given in the question

And, the higher return on investment is the best one for property use

So the office building has a higher return on investment i.e 13.5% which reflects the best for property usage.

6 0
3 years ago
Your grandparents deposit $2,000 each year on your birthday, starting the day you are born, in an account that pays 7% interest
OverLord2011 [107]

Answer:

The money you will have is $98020.

Explanation:

It is given that grandparents deposit $2,000 each year on birthday and the account pays 7% interest compounded annually also the time is 21 years.

we will use the compound interest formula  A=P (1 + \frac{r}{100})^{t}.

For the first birthday the amount after 21 yr will be:

A=2000(1+\frac{7}{100})^{21}

Similarly for the second birthday amount after 20yr will be:

A=2000(1+\frac{7}{100})^{20}

likewise, the last compound will be:

A=2000(1+\frac{7}{100})^1

The total value of such compounding would be :

\text {Total amount}=2000(1+\frac{7}{100})^{21}+2000(1+\frac{7}{100})^{20}...2000(1+\frac{7}{100})^{1}

\text {Total amount}=2000[(1+\frac{7}{100})^{21}+(1+\frac{7}{100})^{20}...(1+\frac{7}{100})^{1}]

\text{Total amount} \approx 2000(48.01)

\text{Total amount} \approx 96020

The total amount just after your grandparents make their​ deposit  is:

≈($96020+2000)

≈$98020

Hence, the money you will have is $98020.

4 0
3 years ago
Current Attempt in Progress Suppose at December 31 of a recent year, the following information (in thousands) was available for
alex41 [277]

Answer:

                                           OAKLEY

INVENTORY TURNOVER  2,66  

Cost Of Goods                 395,010  

Average Inventory            148,500  

DAYS IN INVENTORY        137  

Explanation:

To calculate the Inventory Turnover ratio it's necessary to calculate the average inventory of the year , the take the Total Cost of Goods and divide it by the Average Inventory, the result it's the Inventory Turnover of the company, in this case 2,66  

To find the days in inventory we have to divide 365 (days of the year) and divide it by the Inventory Turnover, 2,66, the result is 137 days.

      END  START

$172,000   $125,000  Inventory

$ 768,000  Sales Revenue

$ 395,010  Cost of Goods Sold

OAKLEY

INVENTORY TURNOVER  2,66  

Cost Of Goods  395,010  

Average Inventory  148,500  

DAYS IN INVENTORY  137  

4 0
3 years ago
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