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Only need C. C has multiple answers a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. The
Only need C. C has multiple answers
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 0.548. (Round to three decimal places.) The market capitalization-to-revenue ratio for Southwest Airlines is 1.264. (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 0.779. (Round to three decimal places.) The enterprise value-to-revenue ratio for Southwest Airlines is 1.252. (Round to three decimal places.) c. Which of these comparisons is more meaningful? Explain. (Select all the choices that apply.) A. The enterprise value-to-revenue ratio is more useful when the leverage of firms is quite different, as it is here. B. The market capitalization-to-revenue ratio is more useful when the leverage of firms is quite different, as it is hereStep by Step Solution
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