Explain how the price/earnings ratio method of valuation works. Give an example.

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Entrepreneurship Theory Process and Practice

ISBN: 978-1285051758

9th edition

Authors: Donald F. Kuratko

See More Books

Question Posted: Jan 14, 2015 09:22 AM

See More Questions

Explain how the price that U.S. consumers pay for goods from Mexico and the quantity of U.S. imports from Mexico have changed. Who are the winners and who are the losers from this free trade?
Explain how the price that Canadians pay for goods from Mexico and the quantity of Canadian imports from Mexico have changed. Who are the winners and who are the losers from this free trade?
Explain how the price of a good you buy is affected by changes in the prices of (a) substitute goods; (b) complementary goods.
The Whitewater LLP is equally owned by three partners and has the following balance sheet at the end of the current tax year: Partner Petula is an active (i.e., general) partner retiring from the...
A 1.500-g sample of a mixture of ribose and 2-deoxyribose was dissolved in 100.0 g of water. If the freezing point of the solution was 0.0556C, what is the percentage (by mass) of ribose in the...
Using the information from Review 4-4, answer the following questions. a. Determine the total profit for standard items and custom items using the current allocation system. b. Determine the total...
Historical cost incurred in the past are known as (a) Shutdown costs (b) Sunk cost (c) Differential cost (d) Predetermined cost
Quick Drive-Ins borrowed money by issuing $4,000,000 of 4% bonds payable at 96.5. Requirements 1. How much cash did Quick receive when it issued the bonds payable? 2. How much must Quick pay back at...
General Electrics board of directors adopted and announced a restructuring plan in the fourth quarter of 2019, estimated to cost $1.2 billion in asset impairments, employee termination costs, and...
Suppose that the random variables Y1,..., Yn satisfy Yi = xi + i, i = 1,..., n, where x1, ..., xn are fixed constants, and 1,..., n are iid n(0, 2), 2 unknown. a. Find a two-dimensional sufficient...
One of the most popular methods of business valuation is the adjusted tangible book value method. Describe how this method works.
What are the steps involved in using the discounted earnings method? Give an example.
Brilles offered to sell his used automobile to Nevarro for $12,600 cash. Nevarro agreed to buy the car, gave Brilles a check for $12,600, and drove away in the car. The next day Nevarro sold the car...
A large-sized chemical company is considering investing in a project that costs `5,00,000. The estimated salvage value is zero; tax rate is 35 per cent. The company uses straight line method of...
From the following budgeted and actual figures, calculate and present the variances in respect of profit on sales and cost of sales. Budget: Sales, 2,000 units @ 15 each Cost of sales @ 12 each...
(a) From the following data of a manufacturing unit, find out (i) sales to break-even and (ii) sales to earn a profit of 8,000. (b) The following information is available for companies A and B. (i)...
Wowem Corporation manufactures a wide range of clothing apparel. It is a decentralized organization in which different divisions have responsibility for the manufacture and distribution of major...
(a) Use a molecular orbital program or input and output from software supplied by your instructor to construct a molecular orbital energy-level diagram to correlate the MO (from the output) and AO...
How would your answer to the previous problem change if you were told that ABV had options outstanding for 50 million shares and that each option had a value of $5?
Find an equation of the given line. Slope is -2; x-intercept is -2
Describe the two-stage least squares estimation procedure for estimating an equation in a simultaneous equations model, and explain how it resolves the estimation problem for least squares.
Would you describe Google as a happy ship? Is a happy ship always the most efficient and innovative? Why or why not?
Do you think Googles drive for great growth faces serious obstacles? If so, how might it overcome them?
On balance, do you think Google has a serious public relations problem?
Your company produces a health magazine. Its sales data for 1 - year subscriptions are as follows: Year of Operation Subscriptions Sold % Expired at Year End 2 0 2 0 $ 3 0 0 , 0 0 0 5 0 2 0 2 1 $ 6 4...
The adjusted trial balance for Tybalt Construction on December 3 1 of the current year follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 3 1 Number Account Title Debit Credit 1 0 1 Cash $...
( US$ millions ) 1 2 / 3 1 / 2 0 1 4 1 2 / 3 1 / 2 0 1 3 1 2 / 3 1 / 2 0 1 2 1 2 / 3 1 / 2 0 1 1 Net income $ 1 4 , 4 3 1 $ 1 2 , 8 5 5 $ 1 0 , 7 7 3 $ 9 , 7 7 2 Depreciation 3 , 5 4 4 2 , 7 0 9 1 ,...

Explain how the price/earnings ratio method of valuation works. Give an example.

Question:

Step by Step Answer:

The valuation is determined by dividing the market price of t...View the full answer

Entrepreneurship Theory Process and Practice

Students also viewed these Finance questions