The simplest valuation technique that involves taking the earnings (or projected earnings) of the business and multiplying that figure by the market premium of companies in their industry.
price/earnings valuation
asset-based valuation
market estimation valuation
discounted net cash flow valuation
Answers
The simplest valuation technique involving the multiplication of a business's earnings by the market premium of companies in their industry: price/earnings (P/E) valuation. The correct answer is a.
The price/earnings (P/E) valuation is a widely used method to determine the value of a company. It involves dividing the company's market price per share by its earnings per share (EPS). By comparing the P/E ratio of a company to those of other firms in the same industry, investors can get an idea of how the market values the company's growth prospects and profitability.
This method is considered simple because it requires only basic financial data and provides a quick comparison between companies. However, it should be used with caution, as it may not accurately reflect the company's intrinsic value, especially when considering factors like debt levels or the company's growth potential.
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Complete question:
The simplest valuation technique that involves taking the earnings (or projected earnings) of the business and multiplying that figure by the market premium of companies in their industry.
a. price/earnings valuation
b. asset-based valuation
c. market estimation valuation
d. discounted net cash flow valuation
Related Questions
printing a brand's web address on a shopping bag used to carry merchandise sold at a brick-and-mortar store is a form of:
Answers
Printing a brand's web address on a shopping bag used to carry merchandise sold at a brick-and-mortar store is a form of promotional marketing.
Promotional marketing DefinitionPromotional marketing is designed to spread knowledge about a brand, product, or service to a wide audience with the aim of increasing brand awareness and sales. Its purpose is to inspire a potential customer to take action.
Promotional marketing is part of the famous marketing mix that refers to a group of tactics that a company chooses to take a product or service to market.
It is a way for the brand to promote its online presence and drive traffic to its website. It can also serve as a reminder for customers to shop online in the future or to share the website with others.
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People who buy shares of a company are called entrepreneurs.
a.True
b.False
Answers
Answer:False they are called stockholders
Explanation:
Answer:
false
Explanation:
Write a scenario that will help you understand the following word or topic and show me that you understand their importance.
Criticism - is the practice of judging the merits and faults of something. Criticism as an
evaluative or corrective exercise can occur in any area of human life. In specific areas of
human endeavor, the form of criticism can be highly specialized and technical; it often requires professional knowledge to understand the criticism.
Answers
Criticism is the practice of judging the merits and faults of something. Criticism as an evaluative or corrective exercise can occur in any area of human life.
Write a scenario that will help you understand criticism?You are a film director and your latest film has just been released. You're excited to see what people think of your work, but when you read the reviews, you are met with a lot of criticism. Some reviewers claim the acting was lackluster, others say the plot was confusing, and a few even say that the special effects were underwhelming.
At first, you feel disheartened and defensive. But after some reflection, you realize that criticism can be a valuable tool for growth and improvement. You start to take the criticism seriously and use it to inform your future work. You work on improving your acting direction, make sure that your plots are clearer, and pay more attention to the special effects.
A year later, you release a new film and it is met with widespread praise. Critics call it a major improvement over your previous work and praise the acting, plot, and special effects. You realize that criticism is an important part of the creative process and can help you become a better filmmaker.
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Need help with this one.
Anton's gross monthly pay is $1,058.00. If his employer withholds 11% for the monthly federal income tax, how much will be deducted from his paycheck?
Group of answer choices
$941.62
$11.00
$116.38
$11.64
Answers
Anton's gross monthly pay is $1,058.00. If his employer withholds 11% for the monthly federal income tax, $116.38 will be deducted from his paycheck.
Define tax?A tax is a mandatory payment or charge levied on individuals or businesses by local, state, and national governments to cover the costs of general government services, goods, and activities.It is derived from the Latin taxare, which means 'to assess'. Previously, English used the related word 'task,' which was derived from Old French.For a time, the terms 'task' and 'tax' were interchangeable, with the first requiring labor and the latter requiring money.The term 'tax' then came to mean something tedious or difficult.Governments levy fees on citizens and businesses to generate revenue, which is then used to meet budgetary demands.This includes financing government and public projects as well as improving the country's business environment to promote economic growth.To learn more about tax refer to:
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what are the stages of the decision-making process?
Answers
Answer:
Step 1: Identify the decision. You realize that you need to make a decision.
Step 2: Gather relevant information.
Step 3: Identify the alternatives.
Step 4: Weigh the evidence.
Step 5: Choose among alternatives.
Step 6: Take action.
Step 7: Review your decision & its consequences.
Explanation:
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PLEASE HELP!
Question: Give an example of a patent in business.
Answers
Answer:
Examples of inventions protected by utility patents are a microwave oven, genetically engineered bacteria for cleaning up oil spills, a computerized method of running cash management accounts, and a method for curing rubber.
Explanation:
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As a consumer consumes more of a good or service, the additional satisfaction of consuming the additional units goes down. This is called the law of:.
Answers
As a consumer consumes more of a good or service, the additional satisfaction of consuming the additional units goes down. This is called the law of diminishing marginal utility.
What is utility?It should be noted that utility simply means the satisfaction that's derived from using a good or service.
In this case, as a consumer consumes more of a good or service, the additional satisfaction of consuming the additional units goes down. This is called the law of diminishing marginal utility.
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All of the following activities are appropriate upon completion of risk response planning EXCEPT: a. The project plan should be updated to reflect any changes to the project schedule, budget or resource assignments. b. A single person should be assigned as the owner of each risk. c. The risk register should be baselined after planning is completed, and should not be updated once the project is in flight. d. The risk register should be updated to reflect the risk response strategies.
Answers
All of the following activities are appropriate upon completion of risk response planning EXCEPT The risk register should be baselined after planning is completed, and should not be updated once the project is in flight. The correct option is c.
After the risk response planning is finished, it is crucial to keep actively managing risks throughout the project. The risk register, a central document that records and monitors identified risks, should be updated frequently to account for any modifications or advancements. This entails revising the risk response plans, reevaluating the likelihood and severity of risks, and recording any fresh risks that might emerge throughout the project.
Option C, which recommends that the risk register be baselined following the completion of planning and not updated once the project is underway, is not a successful strategy. The risk register should be a dynamic tool that is frequently reviewed and updated to ensure its accuracy and effectiveness in addressing project risks since risk management is an ongoing process. The correct option is c.
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Part of the movement to humanize bureaucracy includes a. more rigid hierarchical structures. b. efforts to reduce the amount of informal activity in the workplace. c. putting organizational needs above competing responsibilities. d. efforts to reduce the number of people in dead-end jobs.
Answers
Part of the movement to humanize bureaucracy includes:
d. efforts to reduce the number of people in dead-end jobs.What is Bureaucracy?This refers to the rigid network through which an organization functions and operates through the use of official channels to accomplish tasks which can be viewed as tiresome and burdensome.
With this in mind, we can see that as part of the efforts to try and humanize bureaucracy, there have been efforts in place to try and reduce the number of people that work dead end jobs.
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What is characteristic of an organization in which salespeople do most or all of their own marketing?
independent
small size
nonprofit
private
Answers
Answer:
private
Explanation:
people are doing private marketing to earn money for themselves
Put the following events from computer history in the order they happened:
Drag
Drop
Drag events here with oldest at top
The World Wide Web becomes available to the public
Scientists at Bell Laboratories invent the transistor
Apple releases the iPhone
Herman Hollerith develops electronic tabulating machine
International Business Machines, or IBM, is formed
The Apple Il is released for home consumers
Jack Kilby invents the microchip
Answers
The sequencing of the following events with respect to computer history is as follows:
In 1890, Herman Hollerith introduced a machine of electronic tabulation.In 1911, IBM or an International business machine should be developed.In 1947, The scientist invented the transistor at Bell Laboratories.In 1958, Microchip was invented by Jack Kilby.In 1977, Home consumers should be released by the Apple II.In 1993, WWW or World wide web could be accessed by the public.In 2007, iPhone should be introduced by Apple.In this way, the above events should be ordered.
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Answer:
Answer in image
Explanation:
How do the global and economic activities that our world faces impact marketing activities?.
Answers
Answer: by the trades between countries
Explanation:
1. Which of the following is an example of an economic policy in action?
a.) a local school district cutting property taxes, leaving more money in the hands of homeowners
b.) the amount of money in circulation in an economy
c.) the requirement by the Federal Reserve that banks have a certain amount of cash stored
d.) the interest rate the Federal Reserve charges banks for borrowing money
2.) What is a benefit for a government to issue stimulus checks to its citizens?
a.) The money in the Federal Reserve will be emptied, which causes the economy to reset and then begin to increase at a very fast rate.
b.) Basic needs can be paid for and even some consumer spending can occur, thus stimulating the economy.
c.) A country can transition from a "developing" country to a "developed" country.
d.) All spending will cease, thus, making the economy expand and develop further.
Answers
1. An example of economic policy in action is the interest rate the Federal Reserve charges banks for borrowing money. The correct answer is option D.
2. A benefit for a government to issue stimulus checks to its citizens is for paying basic needs and even some consumer spending can occur, thus stimulating the economy. The correct option is D.
Economic policies encompass all decisions made by the government concerning taxation, redistribution, and the availability of money.
Stimulus checks are direct government payments made to individuals during times of economic difficulty. They are intended to increase consumer confidence and spending by going to taxpayers, who will then use them to stimulate revenue at merchants and manufacturers. As such, they are intended to stimulate the economy.
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The annual mean demand for a certain kitchen-table at Smart Home (SH) is 9,000 units. Ordering cost per order is $50, holding rate is 22%, and unit cost is $500. To apply the EOQ model with service level, demand records were collected daily. The daily demand is normally distributed, with a mean of 25 units and a standard deviation of 15 units. Lead time = 3 days = 2.2 If SH limits the amount spent on holding safety stock to (not more than) 50% of the annual variable cost, what service level can be achieved? The lead time is still 3 days. a. 50% of the annual variable cost = 50%*9949.87= 4974.93 dollars. With this $ amount we can purchase 9 tables. This increases the inventory per cycle to EOQ+SS = 90.45+9=99.45. So, the cycle service level is 90.45/99.45 = 90.09% b. 50% of the TV(Q*) = $4974.93. With this $ amount we can hold 45 tables as safety stock. This results in service level just below 96%. c. None of the above. =
Answers
Therefore, the service level that can be achieved with a limit of 50% on the amount spent on holding safety stock is just below 96%.Option (b) is correct.
Let us first calculate the EOQ using the formula:
EOQ = √((2AS)/H)EOQ = √((2 × 9,000 × 50)/0.22)
EOQ = 450.45 ≈ 451 units
Now, we will calculate the total variable cost per cycle: Total variable cost = (A/Q)S + (Q/2)H + (A × C)
Total variable cost = (9,000/451) × 50 + (451/2) × 0.22 + (9,000 × 500)
Total variable cost = $5,067.61
Now, we will calculate the safety stock using the formula: SS = Zσ √(L)SS = 1.645 × 15 √(3)SS = 28.67 ≈ 29 units
The total inventory per cycle is EOQ + SS = 451 + 29 = 480 units.
Let us now calculate the cycle service level, which is given by: Cycle service level = EOQ/(EOQ + SS)
Cycle service level = 451/(451 + 29)
Cycle service level = 94.06%
As per the question, SH limits the amount spent on holding safety stock to not more than 50% of the annual variable cost. Total variable cost for the given data is $5,067.61.
Hence, 50% of the annual variable cost = 0.5 × 5067.61 = $2,533.81.
The cost of holding safety stock to $2,533.81 is given by: TV(Q*) = S √((2AD)/H) + (Q*/2)H = $2,533.81.
Rearranging the terms, we get: Q* = √((2DS)/H) × √(TV(S)/C) + √((2AD)/H)Q* = √((2 × 50 × 9,000)/0.22) × √(2,533.81 × 50/500) + √((2 × 9,000 × 500)/0.22)Q* = 2,060 units
Therefore, the cost of holding safety stock to $2,533.81 is equal to 2,060 units.
Hence, the safety stock is 2,060 - 451 = 1,609 units.
The total inventory per cycle is EOQ + SS = 451 + 1,609 = 2,060 units.
Let us now calculate the cycle service level, which is given by: Cycle service level = EOQ/(EOQ + SS)
Cycle service level = 451/(451 + 1,609)
Cycle service level = 21.89%
Answer Option (b) is correct.
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. Describe an example of a company that manufactures a product. (2-4 sentences. 1.0 points)
Answers
Answer:
The Coca-cola Company is a company that manufactures products. It is a multi-national company that manufactures soft drinks.
Explanation:
The Coca-Cola Company is an American company, and producer, retailer, and marketer of nonalcoholic drink stores and sugars. As the consumers demand for more the producers supply more. Further more you can easily find the substitutes of Coca-Cola for example if it’s expensive you can move to Pepsi brand which is the same.
Postal service shows the national identity of country. Justify.
Answers
What are the 6 key stages of purchasing a product or service?
Answers
Answer:
Problem Recognition.
Information Search.
Evaluation of Alternatives.
Purchase Decision.
Purchase.
Post-Purchase Evaluation.
Explanation:
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What was the purpose of the pandemic influenza Strategic Plan?
Answers
These strategies attempted to halt, restrict, or otherwise limit the spread of a pandemic to the United States, while also limiting domestic spread, minimizing sickness, misery, and mortality, and sustaining infrastructure and neutralizing the consequences on the economy and society as a whole.
What is the most prevalent cause of influenza?The flu causes severe damage to the lungs, nose, and throat. The most vulnerable include young children, the elderly, pregnant women, and those suffering from chronic conditions or with compromised immune systems. Symptoms include fever, muscle discomfort, cough, congestion, headaches, and fatigue. Rest and water are common flu remedies because they allow the body to combat the sickness on its own. Anti-inflammatory pain medicines sold over-the-counter may aid with symptoms. A annual flu vaccination can aid in both prevention and treatment of the flu. The flu is caused by influenza viruses infiltrating the nose, throat, and lungs. When people with the flu cough, sneeze, or talk, virus droplets are released into the air and perhaps into the mouths or noses of others around them.
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In order to obtain a permit, food service establishments must first
A. obtain a tax ID number
B. apply for initial inspection
C. pay the inspection fee
D. pass a food safety exam
Answers
Answer:
d
Explanation:
i use to work at a company like this i got to own a grocery outlet so i know anything
We assume that the company that you selected is considering a new project. The project has 11 years’ life. This project requires initial investment of $800 million to purchase equipment, and $35 million for shipping & installation fee. The fixed assets fall in the 10-year MACRS class. The salvage value of the fixed assets is 15% of the purchase price. The number of units of the new product expected to be sold in the first year is 2,500,000 and the expected annual growth rate is 5%. The sales price is $318 per unit and the variable cost is $268 per unit in the first year, but they should be adjusted accordingly based on the estimated annualized inflation rate of 8.3%. The required net operating working capital (NOWC) is 13.8% of sales. Use the corporate tax rate which is 10.96%. The project is assumed to have the same risk as the corporation, so you should use the WACC obtained which is 4.43% as the discount rate for this hypothetical project.
Answers
It is given that the new project has an 11-year life and it requires an initial investment of $800 million to purchase equipment, and $35 million for shipping & installation fees.
The fixed assets fall in the 10-year MACRS class. The salvage value of the fixed assets is 15% of the purchase price. The required net operating working capital (NOWC) is 13.8% of sales.
Given data:
Life of the project, t = 11 years
Initial investment for purchase of equipment = $800 million
Shipping and installation fees = $35 million
Fixed assets fall in 10-year MACRS class
Salvage value of fixed assets = 15% of the purchase price
Expected units sold in the first year = 2,500,000
Expected annual growth rate = 5%
Sales price per unit = $318
Variable cost per unit in the first year = $268
Estimated annualized inflation rate = 8.3%
Required net operating working capital (NOWC) = 13.8% of sales
Corporate tax rate = 10.96%
Discount rate for this hypothetical project (WACC) = 4.43%
Let us calculate the salvage value:
Initial investment = $800 million + $35 million= $835 million
The fixed assets fall in the 10-year MACRS class, therefore, the depreciation rate is 10% for the first year
Depreciation = 0.1 × $835 million = $83.5 million
Salvage value = 15% × $835 million = $125.25 million
The total depreciation over the 11-year life of the project will be calculated as follows:
Total Depreciation = $83.5 million × Σ 1/(1+0.0443) = $532.21 million,
where Σ 1/(1+0.0443) is the sum of the present value of the numbers 1 to 10, which is equal to 7.0167.
The annual depreciation expense is the Total Depreciation / Life of the project
= $532.21 million / 11
= $48.38 million
Let us calculate the sales for the first year:
Expected sales for the first year = 2,500,000 × $318 = $795 million
The expected variable cost for the first year = 2,500,000 × $268 = $670 million
The sales and variable cost will increase each year based on the annual growth rate and the estimated annualized inflation rate
Sales and variable costs for 11 years are shown below:
The required net operating working capital (NOWC) is 13.8% of sales. Therefore, the NOWC for each year is calculated as follows:
Net Operating Working Capital (NOWC) = 0.138 × Sales
Operating Cash Flow (OCF) = EBIT × (1 – Tax rate) + Depreciation
Operating cash flows for 11 years are shown below:
The terminal year free cash flows (FCF) can be calculated using the formula:
Terminal Year FCF = (Sales – Variable cost – Depreciation – NOWC) × (1 + g) / (r – g)
where
g = expected annual growth rate = 5%
r = discount rate (WACC) = 4.43%
Therefore,
Terminal Year FCF = ($2,722 million) × (1 + 5%) / (4.43% - 5%) = –$86.7 million
PV of Terminal Year FCF = $86.7 million / (1+4.43%)^11 = -$43.3 million
The total project NPV can be calculated as follows:
NPV = Σ Yearly OCF / (1 + r)^t + PV of Terminal Year FCF= $295.9 million
Thus, the company should invest in the new project since the NPV is greater than zero.
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HURRYYY!! The extent to which critical thinking skills are used is influenced by the learner's motivation to do well.
TRUE or FALSE
Answers
Answer:
TRUE
Explanation:
Get out of my swamp!
Answer:
i think true
Explanation:
HELPP on question 10
Answers
Answer:
land?
Explanation:
Answer:
Land
Explanation:
Give a least two reseons why u think your product and country would be a good idea
Answers
Answer:
my Product and Country Would be a good idea because instead of charging taxes I would make sure everyone is not at the same level but to a point to where no one is homeless or in need of help my product would be something that could make food for free and anytime food is not hard to come by but the wealthy buys so much food that they don't need and discard that those who do need the food cannot retrieve the food because it is already gone being wealthy is nice but if I was wealthy I would try to at least let those around me either become wealthy or make sure they never need something to the point they could die for it.
Explanation:
What should be the first component to consider when building the AI solution?
Answers
Problem Identification should be the first component to consider when building the AI solution.
Artificial intelligence (AI) offers state-of-the-art technologies that can assist your company in resolving issues, automating processes, and improving customer service. AI-based systems are excellent at things like making product recommendations to users, identifying items in images, and automating repetitive chores to save people time. While wide AI refers to where artificial intelligence will be in the future, narrow AI refers to where it is currently. General artificial intelligence (GAI), often referred to as AGI and strong artificial intelligence (AI), is a subset of AI that is capable of thinking and acting similarly to humans.
In order for the software to learn automatically from patterns or features in the data, artificial intelligence (AI) combines massive amounts of data with quick, iterative processing and sophisticated algorithms.
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Any foreseeable losses should be recorded in the current year, whereas profit will be recorded when it is realised
Answers
The given statement is false, this not true about the accounting principle, "going-concern concept."
What is going concern principle?
The principle of going concern:
The going concern principle assumes that a company will continue to operate for the foreseeable future. On the other hand, this means that the company will not be compelled to shut down operations and dispose its assets at fire-sale rates in the near future.
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Alisa is employed by Hallmark Cards, Inc., where her responsibilities include maintaining displays of greeting cards in drugstores and discount stores. Her daily activities include straightening the cards, pulling outdated or slow sellers, and installing new cards. Alisa is called a(n) specialty-line wholesaler. full-service stocker. in-store maintainer. assembler. rack jobber.
Answers
Answer: rack jobber.
Explanation:
A rack jobber is alsso called a rack merchandiser and it refers to a company or a trader that display products and also sells such products in a store.
Since the responsibilities of Alisa include displaying the greeting cards, straightening the cards, pulling outdated cards, and installing new cards, then we can infer that Alisa is a rack jobber.
You have decided to continue on with licensing your business to a firm in India. Much to your surprise, the Indian government has announced that it intends to enact local content law requirements. How will this impact the production of your products?
Answers
Answer:
You are not supposed to be allowed to import solar kits through India.
Explanation:
By laws requiring a predetermined reserve marketplace of providers for foreign operators to purchase from, local sourcing laws therefore will inevitably establish circumstances that are favorable to corruption and fraud. That was because regulations on local content enable businesses to use the very goods as well as products manufactured throughout the home economy and don't use imported products.For setting long-term prices a company should use full product costs. Full product costs for pricing purposes
Question 7 options:
include all manufacturing costs only.
equals manufacturing and selling costs.
include direct costs only.
does not include fixed overhead.
include all direct costs plus an appropriate allocation of the indirect costs of all business functions.
Answers
The approach takes into account all the costs associated with producing and selling a product, providing a more accurate basis for setting prices. The correct answer is: "For setting long-term prices, company should use full product costs, which include all direct costs plus an appropriate allocation of the indirect costs of all business functions."
When setting long-term prices, it is important for a company to consider all costs associated with producing and selling a product. This includes both direct costs, such as materials and labor, as well as indirect costs, such as overhead expenses. Full product costs for pricing purposes take into account all direct costs, which are costs that can be easily traced back to the production of a specific product. These costs include materials, labor, and any other costs directly associated with the production process.
In addition to direct costs, full product costs also include an appropriate allocation of the indirect costs of all business functions. Indirect costs are costs that are not directly tied to the production of a specific product, but still contribute to the overall cost of doing business. These costs can include things like rent, utilities, and administrative expenses. By including both direct and indirect costs in the calculation of full product costs, a company can ensure that they are pricing their products in a way that covers all of their expenses and allows for long-term profitability.
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Banks are a stabilizing force in our entire financial system. Discuss two of the three primary function of the banking system.
Answers
Answer: Banks transfer money from savers to borrowers by holding deposits and lending excess reserves. Banks also create money by making loans of excess reserves.
Explanation: Those are two primary functions.
The banks function in three ways as transfer money from savers hold deposits, and make money by giving loans.
What is a banking system?A banking system is one that is a group or a network of institutions that provides financial services to people. The banking system includes the provision of loans, deposits, and helping investments.
The bank transfers the money from the savers to borrowers by holding the deposits and lending the excessive transfer of reserves.
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if you were running a business. what would be one fear you would have about working with a partner ?
Answers
I think it would always be the backstab fear that comes to mind first.
:)