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help with followibg finance question In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of
help with followibg finance question
In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of $4.00 billion. United Airlines had revenues of $41.30 billion. Southwest Airlines (LUV) had a market capitalization of $27.50 billion, debt of $3.40 billion, cash of $3.70 billion, and revenues of $22.00 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines b. Compare the enterprise value-fo-revenue ratio for United Airlines and Southwest Airlines, c. Which of these comparisons is more meaningful? Explain a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines The market capitalization-to-revenue ratio for United Airlines is . (Round to three decimal places.) The market capitalization-to-revenue ratio for Southwest Airlines is (Round to three decimal places.) b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. The enterprise value-to-revenue ratio for United Airlines is (Round to three decimal places.) The enterprise value-to-revenue ratio for Southwest Airlines is (Round to three decimal places.) c. Which of these comparisons is more meaningful? Explain. (Select all the choices that apply.) DA The market capitalization-to-revenue ratio is more useful when the leverage of firms is quite different, as it is here. B. You cannot meaningfully compare the market capitalization-to-revenue ratio when firms have different amounts of leverage, as market capitalization measures only the value of a firm's equity. c. You cannot meaningfully compare the enterprise value-to-revenue ratio when firms have different amounts of leverage, as enterprise value measures only the value of a firm's equity D. The enterprise value-to-revenue ratio is more useful when the leverage of firms is quite different, as it is here Step by Step Solution
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