The marketing managers of ABC Inc. are looking into whether to put out a large advertising...

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The marketing managers of ABC Inc. are looking into whether to put out a large advertising gimmick. This will increase ABC's previous year's sales by 10%. They plan to use the average TTM price-sales ratio of its closest three competitors to compute its relative market value. Market Capitalization Sales - 2021 1st Quarter 2nd Quarter ANNUAL Sales - 2022 1st Quarter 2nd Quarter ABC Inc. 5,000,000 360,000 370,000 1,430,000 X Inc. 6,300,000 Y Co. 7,300,000 411,000 486,000 492,000 505,000 1,745,000 1,644,000 Z Corp. 6,600,000 532,000 629,000 1,759,000 360,000 475,000 626,000 510,000 340,000 495,000 365,000 445,000 How much would the new relative value of ABC be after considering this action plan? The marketing managers of ABC Inc. are looking into whether to put out a large advertising gimmick. This will increase ABC's previous year's sales by 10%. They plan to use the average TTM price-sales ratio of its closest three competitors to compute its relative market value. Market Capitalization Sales - 2021 1st Quarter 2nd Quarter ANNUAL Sales - 2022 1st Quarter 2nd Quarter ABC Inc. 5,000,000 360,000 370,000 1,430,000 X Inc. 6,300,000 Y Co. 7,300,000 411,000 486,000 492,000 505,000 1,745,000 1,644,000 Z Corp. 6,600,000 532,000 629,000 1,759,000 360,000 475,000 626,000 510,000 340,000 495,000 365,000 445,000 How much would the new relative value of ABC be after considering this action plan?

Answer rating: 100% (QA)

To calculate the new relative value of ABC we first need to calculate its current ... View the full answer