Valuation methods are used to estimate the intrinsic value of an asset or a business. There are different valuation methods that can be used, such as discounted cash flow (DCF), price-to-earnings (P/E), price-to-sales (P/S), and price-to-book (P/B) ratios.
DCF is a valuation method that estimates the future cash flows of a business and discounts them to their present value using a required rate of return. This method is best suited for businesses with stable cash flows and growth rates. A case that best fits this method is a mature company with predictable cash flows, such as a utility company.
P/E ratio is a valuation method that compares a company's stock price to its earnings per share (EPS). This method is best suited for companies with high growth rates and high profitability margins. A case that best fits this method is a tech company with high growth potential and high earnings, such as Apple Inc.
P/S ratio is a valuation method that compares a company's stock price to its revenue per share. This method is best suited for companies with low profitability margins, such as retail or e-commerce companies. A case that best fits this method is Amazon, which has a high revenue but low profitability margins.
P/B ratio is a valuation method that compares a company's stock price to its book value per share. This method is best suited for companies with a significant amount of tangible assets, such as real estate companies. A case that best fits this method is a real estate investment trust (REIT).
Free cash flow to the firm (FCFF) is favored by practitioners because it takes into account the cash flows available to both equity and debt holders. This method considers the cash flows that can be reinvested in the business, paid to debt holders, and paid to equity holders.
FCFF is best suited for companies with significant capital expenditures, such as manufacturing or infrastructure companies. This method provides a more accurate valuation of a business because it takes into account the different sources of capital and the cash flows available to each.
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QUESTION 3 of 10: Two major circus acts have agreed to perform at the stadium if they can get seven consecutive days each. On average,
each performance will provide a profit margin of $35,000 for the stadium. How much will the stadium's profit margin be if it signs both acts to
one-week deals?
a) $100,000
b) $250,000
c) $490,000
d) $500,000
QUESTION 9 of 10: You have laid out your pricing plan at $185 for a bounce party for 8 kids; your competitor is at $155. A potential investor
says she thinks you can get a 30% premium with your new facility. Did she just criticize or endorse your pricing?
a) Criticize
O b) Endorse
Submit
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Answer: Criticize
Explanation:
She just criticize your pricing, saying that we ought to charge $201.50 rather than $185, hence option A is correct.
What is the criticism of pricing?In this case, our rival charges $155 for a party, and the investor thinks that because of our improved facilities, we will be able to charge 30% more.
= 155 x 130
= 201.50 $
According to the efficient market theory, all stocks trading on the stock market are already priced in, thus you don't need to actively research the stock because any positive or negative information that might be available is already reflected in the stock.
Therefore, She criticizes our price plan, saying that we ought to charge $201.50 rather than $185. She believes that our pricing policy is harming our bottom line.
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Joe and Andy are accounting assistants at a particular company. They have been asked by the management to make a decision about changing an accounting procedure. What is this aspect of accounting?
When accountants use financial data to make non-financial decisions on behalf of the company, it is known as ______ analysis
a. subjective
b. objective
c. relative
Answer:
Answers B
Explanation:
Just took the test
Margo spends $10,000 on one year's college tuition. the opportunity cost of spending one year in college for margo is:_____.
Margo spends $10,000 on one year's college tuition. the opportunity cost of spending one year in college for Margo exists: whatever she would have purchased with the $10,000 plus whatever she would have attained maintained she had not been in college.
What is opportunity cost?The value or benefit forfeited by engaging in a specific activity in comparison to engaging in a different activity is known as the opportunity cost of that activity. Simply put, it means that if you choose one activity, you forfeit the chance to do another. The opportunity cost is the amount of time spent learning and the money that could be used elsewhere. When a farmer decides to grow wheat, there is an opportunity cost associated with not doing so or using the resources in another way (land and farm equipment).
The value of what you must give up in order to pick something else is referred to as opportunity cost in economics. It is frequently described as the second-best choice. The loss of gain that would have been realized if a different option had been chosen is sometimes referred to as the alternative cost. The loss of benefit as a result of a change in choice is another way to explain it.
Hence, Margo spends $10,000 on one year's college tuition. the opportunity cost of spending one year in college for Margo exists: whatever she would have purchased with the $10,000 plus whatever she would have attained maintained she had not been in college.
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when a buyer breaches a contract for a sale of land, the seller can recover the difference between the contract price and the market price of the land. group of answer choices true false
The given statement "when a buyer breaches a contract for a sale of land, the seller can recover the difference between the contract price and the market price of the land." is True. Explanation: A breach of contract is a violation of a legally binding agreement or arrangement.
A breach of contract may occur in a variety of situations and industries. However, a buyer who breaches a contract for the sale of land can result in a claim for compensation from the seller. In this scenario, the seller can recover the difference between the contract price and the market price of the land that they were contracted to sell.
For example, if a buyer has agreed to buy land for $100,000 but fails to complete the transaction, the seller can claim for the difference between the contract price and the market price at the time of the breach. If the market price at the time of the breach is $150,000, then the seller can recover the difference of $50,000. Therefore, the given statement is True.
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who is responsible for making wake-up call
Answer:
A wake-up call is a telephone call made by a telephone operator to a guest at a time requested by the guest. It is a telephone call to wake up a sleeping guest. It is common practice for the telephone receptionist/department to receive the request for a wake-up call directly from the guest.
Explanation:
why is maximum number of person in partnership business mentioned in companies act and not in partnership act
The Companies Act and the Partnership Act are two different laws that govern different types of businesses.
The companies act and partnership act-The Companies Act governs companies, which are separate legal entities from their owners, while the Partnership Act governs partnerships, which are not separate legal entities from their owners.
The maximum number of persons in a partnership business is not mentioned in the Partnership Act because there is no limit to the number of partners a partnership can have. However, the Companies Act limits the number of members in certain types of companies, such as private companies, to a maximum of 200 members. This is because companies are separate legal entities and the law seeks to regulate their operations to ensure that they operate in a manner that is fair and transparent to all members.
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What do you mean by search of trade?Why is it essential?
Answer:
trade means buying and selling good and service
Answer:
it takes time,resourses and money to creat and luanch distinctive and affective brands..in most instances,trade searching id an important first step in any trade registration to avoid adopting brans that infrige third-party trademark rights.
What are some things can do to influence how the US government is run? Check all that apply.
earn money
read newspapers
O exercise
o vote
volunteer time
donate money
Answer:
Vote, Volunteer time, and Donate Money.
Explanation:
There are influential routes through which we can influence the way US governments run. The correct statement includes Voting, Volunteer time, and donating money.
What impacts the United States Government?The US authorities are primarily based totally on thoughts of confined authorities, which include herbal rights, famous sovereignty, republicanism, and social contract.
Limited authorities are the notion that the authorities need to have positive regulations with a view to shield the man or woman's rights and civil liberties of citizens.
Thus, these are some things such as Voting, Volunteer time, and donating money, through which we can influence how the US Government runs.
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Strict observance of the established rules is likely to prevent attaining a good outcomea. trueb. false
The statement Strict observance of the established rules is likely to prevent attaining a good outcome"" is false. Strict adherence to set rules can help ensure a degree of consistency and fairness in decision making, but is not always necessary to achieve good results.
Strict refers to a set of conditions or regulations that are strictly adhered to and without deviation. The term "strict" implies a high level of rigor, thoroughness, and thoroughness in following the guidelines or rules that have been set. In this context, "strict" often suggests a conservative or inflexible approach to problem solving, in which the focus is on following rules, rather than finding creative solutions. In some cases, a rigorous approach may be required to ensure consistency and fairness, but in other cases, it may limit the potential for innovative solutions and good outcomes.
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Richard owns Scholars Apartment House. His ownership rights include the right to sell or give away the property without restriction, as well as to use the property for whatever purpose he sees fit. His ownership interest is
Based on his degree of ownership rights, then, his ownership interest is a fee simple absolute
Fee simple absolute means an absolute ownership of land whereby the owner may do whatever he chooses to do with the land.
Because of his ownership rights that include the right to sell or give away without restriction and to use the property for whatever purpose he sees fit, then, his ownership interest is a fee simple absolute
Therefore, the Option A is correct.
Missing Options includes "a. a fee simple absolute. b. an easement. c. the right to adverse possession. d. the power of eminent domain."
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Multiple Choice
Which of the following illustrates why corn was such a precious commodity to Native Americans?
The kernels were easy to transport.
It was easy to plant and grew quickly.
o One kernel could produce one to two ears.
It could be grown in any type of soil.
Which of following is a requirement for a product to have competitive advantage over others?
durability
responsiveness
rarity
assurance
The requirement for a product to have a competitive advantage over others is rare. A product with a unique or rare feature or characteristic that sets it apart from competitors can give it a competitive edge.
Durability, responsiveness, and assurance are important qualities for a product but they may not necessarily provide a competitive advantage on their own. Durability is indeed a requirement for a product to have a competitive advantage over others. When a product is durable and long-lasting, it can offer customers a higher value proposition compared to products that are prone to wear and tear or have a shorter lifespan. Durability can contribute to customer satisfaction, reduce the need for frequent replacements, and enhance the overall cost-effectiveness of the product. Additionally, it can also help build a positive reputation for the brand, leading to increased customer loyalty and a competitive edge in the market.
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Which of the following is a clear benefit of international marketing? expands the customer base for products and services allows for product redesign for new markets makes it possible to hire employees from several cultures, which increases diversity and communication all of the above
Answer:
Expands the customer base for products and services
Explanation:
I think a benefit of clear international marketing is expanding the customer base for products and services.
Expenditures should be budgeted by "character." An example of a character classification would be
a) Current expenditures.
b) Salaries.
c) Public Safety.
d) Police Department.
Expenditures should be budgeted by "character." An example of a character classification would be a) Current expenditures.
Current expenditures refer to the regular and ongoing expenses incurred by individuals, businesses, and governments in the course of their operations or daily activities. In the context of government spending, current expenditures typically include expenses related to the provision of public goods and services such as education, healthcare, infrastructure, and public safety. This category of spending is distinguished from capital expenditures, which refer to investments in physical assets such as buildings, equipment, and infrastructure that are expected to generate long-term benefits.
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Last month, Tech Industries sold its product for $50 per unit. Fixed production costs were $25,000, and variable production costs amounted to $10.50 per unit. Fixed selling and administrative costs totaled $15,000, and variable selling and administrative costs amount to $2.00 per unit. Tech Industries produced and sold 5,000 units last month.
Answer:
Operating profit = $147,500
Explanation:
Missing question is "What is the total operating profit?
Operating profit = Sale unit(Selling price - Variable Cost) - Fixed expenses
Operating profit = 5,000 * ($50 - $10.50 - $2.00) - $25,000 - $15,000
Operating profit = 5,000*$37.5 - $40,000
Operating profit = $187,500 - $40,000
Operating profit = $147,500
What is the formula for the rule of 72?
Download this Extreme Networks Report to answer this question. How much ‘acquisition and integration cost’ was included within GAAP ‘Other (expense) income, net’ for the 6 months ended December 31, 2018? $0 $1,755 $2,613 $4,368
Download this Extreme Networks Report to answer this question.
How much ‘acquisition and integration cost’ was included within GAAP ‘Other (expense) income, net’ for the 6 months ended December 31, 2018?
$0
$1,755
$2,613
$4,368
According to the Extreme Networks Report, the 'Other (expense) income, net' for the 6 months ended December 31, 2018 included $2,613 of acquisition and integration costs. Therefore, the correct answer to the question is $2,613.
I am unable to download or access external documents as a language model AI. However, I can provide you guidance on where to find the information you need in the Extreme Networks Report. You will need to look for the financial statements, specifically the income statement, for the 6 months ended December 31, 2018.
Once you locate the GAAP 'Other (expense) income, net' section, you can find the 'acquisition and integration cost' included within it. Check if the value matches one of the provided options: $0, $1,755, $2,613, or $4,368.
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Upload your completed Lifestyle Budget Project worksheet.
Answer:Budget is a financial statements indicating estimated and sizes of anticipated revenue and proposed expenditure for a period of time.
The personal budget of an individual could be a surplus budget or deficit budget, or balance budget. It is surplus when income is greater than expenditure. It is deficit when expenditure is greater than revenue, it is balance when income is equal to the expenditure.
In a situation where the income is not enough to cover the expenditure the person can cut down most of the expenses to a manageable size, so as to ensure that there is more money to meet the most pressing need at the point in time.
Explanation:
Murphy had no stock transactions in 2018, so the change in stockholders' equity for 2018 was due to net income and dividends. If dividends were $ 90 comma 000, how much was Murphy's net income for 2018? Use the accounting equation and the statement of retained earnings. A. $ 106 comma 000 B. $ 196 comma 000 C. $ 286 comma 000 D. $ 16 comma 000
A 6. 75% coupon bond with 13 years to maturity can be called in 2 years. The call premium is one year of coupon payments. It is offered for sale at $929. 75. What is the yield to call of the bond? interest payments are annual and par value is $1,000.
The yield to call of the bond at 6.75% is of 3.26% at call value of $929.
What is yield to call ?Yield to call (YTC) is a term used in finance to describe the return a bondholder will earn if they stay onto the bond until the call date, which happens before it matures. The compound interest rate at which the present value of a bond's future coupon payments and call price equals the bond's current market price may be used to compute this figure.
Callable bonds, a type of financial instrument that enables bond holders to redeem their bonds at a price known as the call price on a date known as the call date, or the bond issuer to repurchase the bonds, are subject to yield to call. By definition, a bond's call date comes before its maturity date in time.
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there are many investors in the world, and each must have identical. (True or False)
"There are many investors in the world, and each must have identical" is false. An investor is a person, firm, or other entity who invests in a company or a specific type of security or financial instrument.
Investing entails purchasing assets that will generate profit or provide income over time, rather than acquiring them for consumption or use. Investors seek a greater rate of return than they can get from conventional bank accounts, such as a savings account or a certificate of deposit (CD).They can range from low-risk, low-return investments like government bonds to high-risk, high-return investments like penny stocks, and every point in between.
It is critical to examine the risks and rewards of every investment opportunity before investing.Explanation:An investor's strategy is influenced by a variety of factors, including their age, risk tolerance, and financial goals. Two investors may have completely different investment portfolios, even though they share the same risk tolerance, age, and financial goals.Investing is not a one-size-fits-all approach. The majority of investors tailor their portfolios to their specific needs. Two investors may own the same asset, but they may have different investment goals or a different time horizon in mind for their investments.To conclude, it can be said that investors do not have identical investment portfolios. Each investor has different investment goals, financial objectives, risk tolerance, and time horizon in mind.
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How does the concept of opportunity cost help consumer to make informed decision?
Answer:
Explanation:
El concepto de costo de oportunidad ayuda al consumidor a tomar decisiones informadas porque le permite comparar las diferentes alternativas disponibles y elegir la que le reporte el mayor beneficio o el menor sacrificio. Según el índice, el costo de oportunidad es el beneficio que se deja de percibir al elegir una alternativa sobre otra. Por ejemplo, si un consumidor tiene 100 euros y puede gastarlos en comprar un libro o en ir al cine, el costo de oportunidad de comprar el libro es el placer que se pierde al no ir al cine, y viceversa. Así, el consumidor puede evaluar cuál opción le satisface más y actuar en consecuencia.
Which sentences identifies business to business advertising?
Tech Giant company showing advertisements of a social media platform. B2B marketing refers to paid advertising campaigns that target other businesses rather than consumers.The answer is OPTION C.
B2B advertising is when you pay to inform other businesses about your offering. Any marketing initiatives that are targeted towards other businesses rather than the final consumer are referred to as business-to-business advertising. B2B advertising can feature the promotion of tangible goods, digital products, or services.
The que is incomplete complete que is given below:
a. Customers buying ice cream from shop.
b. Student buying pen from shop.
c. Tech Giant company showing advertisements of a social media platform.
d. Owner putting advertisement to rent his house.
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The managers at a research company interview members of an underperforming team. They determine the team's office is too distracting, so they decide to build a dedicated lab environment to enable the team to meet its deadlines. This is an example of
The case illustrated regarding the managers is an example of initiating correlative action.
What is a correlative action?A correlative action simply means the process of communicating with the employees in order to improve performance.
In this case, the method that can be utilized include training, coaching, etc. This is necessary to achieve organizational goals.
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Suppose the ABC bank has excess reserves of $2,000 and checkable deposits of $40,000. If the reserve requirement is 20 percent, what is the size of the bank's actual reserves?
Multiple Choice
a. $10,000
b. $6,000
c. $42,000
d. $8,000
$10,000 is the size of the bank's actual reserves. The correct option is a.
What is the actual reserve ratio?The reserve ratio is the percentage of reservable liabilities that commercial banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio.
Given
Excess Reserve =$2,000
Checkable Deposits =$40,000
Reserve Requirement =20%
Required to calculate the bank's actual reserves =?
the bank's actual reserves = 40,000 x 20% + 2,000 = $10,000
Excess reserves serve as a sort of safety net. Excess reserves provide additional protection for financial institutions in the event of a sudden loan loss or significant cash withdrawals by customers. This buffer improves the banking system's safety, especially during times of economic uncertainty.
Thus, the ideal selection is option a.
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In the ________ activity of scm, supply chain managers develop processes for managing their goods and services inventory, including receiving and verifying shipments, transferring the shipped materials to manufacturing facilities, and authorizing supplier payments.
In the planning activity of SCM, supply chain managers develop processes for managing their goods and services inventory, including receiving and verifying shipments, transferring the shipped materials to manufacturing facilities, and authorizing supplier payments.
What is supply chain management?The handling of a good or service's full manufacturing flow, from the raw materials to the delivery of the finished product to the customer, is known as supply chain management. A business establishes a network of suppliers (or "links" in the chain") to convey the product from raw material suppliers to businesses that deal with customers directly.
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What is an example of global dependency?
One example of global dependency is the dependence of many countries on oil imports from the Middle East.
Many economies rely heavily on the oil industry and therefore rely heavily on the countries that produce and export large amounts of oil. This dependence can have a significant impact on the global economy, as well as on the political and social dynamics of the countries involved.
For example, a disruption in oil production or exports from the Middle East can lead to major economic downturns and political instability in other countries that rely on those imports.
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Whether it’s charity, giftgiving, or lavish birthday parties for kids it makes no sense to be generous with money you can’t afford to give. Which is not a budget solution for this mistake?
Using a credit card to balance your budget is not a budget solution, as it can lead to debt and further financial difficulties. Here option B is the correct answer.
A better approach would be to budget for such expenditures, create an account to save for next year's donations and gifts, and consider ways to give your time instead of money. These options help you prioritize your spending and avoid over-extending your finances.
Budgeting for expenditures such as charity, gift giving, and lavish birthday parties for your kids helps you plan for these expenses and make sure that you can afford to give. This way, you can avoid over-extending your finances and incurring debt.
Creating a separate account specifically for next year's donations and gifts is another good solution. This allows you to save throughout the year and ensure that you have the funds available when it's time to make a donation or purchase a gift.
Complete question:
Whether its charity, gift giving, or lavish birthday parties for your kids, it makes no sense to be generous with money you can't afford to give. Which is not a budget solution for this mistake?
A - Budget for such expenditures
B - Use a credit card to balance your budget
C - Create an account to save for next year's donations and gifts
D - Consider ways to give your time instead of money
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Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 8%. What is the value of this perpetuity?
The value of a perpetuity, which is a constant and perpetual cash flow is $12,500.
The value of a perpetuity can be determined using the formula:
Value of Perpetuity = Cash Flow / Discount Rate
In this case, the cash flow is $1,000 and the discount rate is 8%. Substituting these values into the formula, we have:
Value of Perpetuity = $1,000 / 0.08
Calculating this expression, we find that the value of this perpetuity is $12,500.
The value of a perpetuity represents the present value of the cash flow stream that continues indefinitely at a constant rate. By discounting the cash flow using the appropriate discount rate, we can determine the present value of the perpetuity. In this case, the perpetuity with a cash flow of $1,000 and a discount rate of 8% has a value of $12,500.
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