Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In January 2019, United Airlines (UAL) had a market capitalization of $23.22 billion, debt of $13.74 billion, and cash of $4.15 billion. United Airlines had

image text in transcribed

In January 2019, United Airlines (UAL) had a market capitalization of $23.22 billion, debt of $13.74 billion, and cash of $4.15 billion. United Airlines had revenues of $41.08 billion. Southwest Airlines (LUV) had a market capitalization of $27.46 billion, debt of $3.55 billion, cash of $3.79 billion, and revenues of $22.12 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-to-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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Pricing And Hedging Financial Derivatives A Guide For Practitioners

Authors: Leonardo Marroni, Irene Perdomo

1st Edition

1119953715, 978-1119953715

More Books

Students also viewed these Finance questions

Question

What is the margin of safety, and for what is it used?

Answered: 1 week ago

Question

Describe three other types of visual aids.

Answered: 1 week ago