a recommended approach for determining a firm's worth is to base the analysis on the selling price of a similar company. true or false
Answers
True, a recommended approach for determining a firm's worth is to base the analysis on the selling price of a similar company. This method is known as the Comparable Company Analysis (CCA) and is widely used in valuations.
The CCA involves comparing the target company's financial metrics, such as Price-to-Earnings (P/E) ratio, Price-to-Sales (P/S) ratio, and Enterprise Value-to-EBITDA (EV/EBITDA) ratio, to those of similar companies within the same industry.
This helps establish a fair market value for the firm, taking into account its size, growth potential, profitability, and risk profile. By analyzing these ratios, you can derive an estimated value for the target company based on the performance and market perception of its peers.
It is essential to choose comparable companies carefully, considering factors like size, growth, and market conditions. Overall, the CCA is a practical and widely accepted method for determining a firm's worth.
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Related Questions
college finite 7.A poll sampled 1000 adults in the U.S.Of these people,770 said that they enjoyed situations in which they competed with other people. Can you conclude that the proportion of adults in the U.S.that like to compete is less than 80%? Use a significance level of a=0.05 Step 1: State the null and alternative hypotheses. Step 2: Given the level of significance a =0.05,determine the critical value associated with it. Step 3: Compute test statistic. Method 1:p-value Method 2:critical value Conclusion in a sentence (Specifically explain the answer in relation to the problem).
Answers
The hypothesis is
H0: P = 80 %
H1: P < 80%
The test statistic is given as -2.38
How to solve for the hypothesisState the null and alternative hypotheses.
(H0): The proportion of adults in the U.S. who like to compete is equal to 80%.
Alternative hypothesis (H1): The proportion of adults in the U.S. who like to compete is less than 80%.
Step 2: Given the level of significance α = 0.05, determine the critical value associated with it.
The critical value for a one-tailed test with α = 0.05 can be found from a standard normal distribution (Z distribution), which is -1.645.
Step 3: Compute test statistic.
The test statistic for a population proportion is a z-score, given by:
where
p = sample proportion = 770 / 1000 = 0.77
p 0 = population proportion under the null hypothesis = 0.80
n = sample size = 1000
z = (0.77 - 0.80) / √[(0.80 * 0.20) / 1000]
= -0.03 / 0.0126
= -2.38
Checking a standard Z-table, the value for Z = -2.38 is 0.0087.
Conclusion
We conclude that the proportion of adults in the U.S. who like to compete is less than 80%.
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Credit that can be increased up to a certain point is called?
A. Open ended credit
B. Closed ended credit
C. Bankruptcy
D. Respossess
Answers
Answer:
Open Ended credit
Explanation:
y'all know how to do this??
Answers
2 | march 21st | water bill | -65.39 | n/a | 569.12
Explanation:
You take the information for each deposit/payment, fill out the date, what it was, the amount given/lost, and then add/subtract from the balance of the last addition.
Answer:
2 -65.39 n/a 569.12
Explanation:
The Galindo family plans to start a small business in our neighborhood. The father
borrows $10,000 from the bank at an annual interest rate of 7.5% rate for 42
months. What is the amount of interest he will pay on this loan?
$26.25
$26,250
$262,500
$2,625
Answers
Answer:
$2,625
Explanation:
Interest is calculated using the formula
I = p x r x t
For Galindo family
I= interest,
P = principal amount : $10,000
r= Interest rate: 7.5 % or 0.075
t= times in years : 3.5 years( 42 months /12)
I= $10,000 x 0.075 x 3.5
I=750 x 3.5
I=$2,625
Faye and Grant are shareholders of Hearthside Hotels, Inc. As shareholders, they must approve
a. none of the choices.
b. a merger.
c. a contract between management and labor.
d. a decision to pursue new business opportunities.
Answers
In this case, Faye and Grant's approval would be required to proceed with the merger, highlighting their responsibility and influence as shareholders of Hearthside Hotels, Inc. Option B is correct.
This is because it is a significant decision that affects the company's structure and operations, requiring the consent of shareholders who have a stake in the company's ownership and value. When a merger is proposed, shareholders are given the opportunity to vote on whether to proceed with the consolidation of two or more companies.
This decision is crucial as it can have substantial implications for the shareholders' investments, potential profitability, and future direction of the company. Shareholders play a vital role in safeguarding their interests and ensuring that any mergers align with their expectations and long-term goals.
Option B holds true.
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Jake Olsen has decided to put $1,000 in the bank. List several questions Jake might want to ask before ch whether to put the money in a checking or a savings account.
Answers
Answer:
look at my comment
Explanation:
Which of the following steps would a
personal financial analyst help an
individual plan for as they work
throughout their career?
A. Locate auto dealers and insurance
B. Plan for retirement
C. Receive proper health benefits from an employer
Answers
In general, a financial advisor assists customers with money management, whereas a financial planner creates clients' unique financial plans.
Who is in need of financial advice?Once your financial situation is becoming more complicated, like when users receive an inherited wealth from a mother or you want to boost your retirement savings, some experts advise hiring an advisor. Others disagree, saying that a good general rule of thumb is to do so when you could save 20% of your yearly income.
How should I be ready before I see a financial advisor?Describe your debts in detail, including any mortgage, credit card debt, student loans, auto loans, and other obligations, along with the terms and interest rates associated with each loan. Give us a copy of your estate planning and insurance documentation. Discuss your financial risks & how they are or are not currently protected in advance.
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Help If Jane is currently willing to trade 3 soft pretzels for 1 chili dog, then she must like chili dogs better than soft pretzels. This statement is O A. true because Jane has a diminishing marginal rate of substitution. O B. true because Jane is always willing to trade 3 soft pretzels for 1 chili dog. O c. not necessarily true unless Jane has convex preferences. OD. not necessarily true if Jane's willingness to trade chili dogs for soft pretzels does not change. O E. not necessarily true if Jane's willingness to trade soft pretzels for 1 chili dog depends on how many chili dogs and soft pretzels she currently has
Answers
The correct option is E. Not necessarily true if Jane's willingness to trade soft pretzels for 1 chili dog depends on how many chili dogs and soft pretzels she currently has.
The statement does not necessarily hold true if Jane's willingness to trade soft pretzels for chili dogs depends on her current possession of both items. It means that her preference might change based on the quantities she has, and it does not clearly indicate that she likes chili dogs better than soft pretzels.
Jane's preference for chili dogs over soft pretzels cannot be concluded based on this statement alone, as her willingness to trade might change depending on her current possession of both items.
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why planning is important before starting a business?
Answers
Answer:
So you can get ready to know 'how to make your business good'
If you don't plan, then you'll forget to setup something is may be important
Explanation:
Hope this helps :)
HELP ASAP!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
About which activity or aspect of the distribution function does David need more guidance?
David works as a warehouse employee for a business that manufactures kitchenware. The utensils and other items that the business manufactures are extremely delicate. Recently, David dropped some expensive glassware when he was loading the items in a truck. David’s manager has decided to provide him better guidance about an important aspect of distribution, which is BLANK.
Answers
Answer: I think it’s marketing
Explanation:
When writing a business plan, it
is important to think about the competition. Think of a
product or service you use often. What are the advantages it
has over competing products?
Answers
Say you are developing a phone, what features does it have over Apple? Let’s say Apple released a new feature, the greatest touch screen by average standards, so how can you top that? You can’t cause it’s the “greatest” by average standards
When would you include an executive summary in a report?
Answers
Answer: Is B. When the report is 30 Pages long
Explanation: because I know
Fiscal policies of state and local government are frequently pro-cyclical in that they ______ the economy.
Answers
Fiscal policies of state and local government are frequently pro-cyclical in that they worsen the economy.
What is a meaning of fiscal policy?
Fiscal policy is the use of government spending and taxation to influence the economy. Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.
What is the role of fiscal policy?
The role of fiscal policy. Fiscal policy can promote macroeconomic stability by sustaining aggregate demand and private sector incomes during an economic downturn and by moderating economic activity during periods of strong growth.
What are the effects of fiscal policy?
The direct and indirect effects of fiscal policy can influence personal spending, capital expenditure, exchange rates, deficit levels, and even interest rates, which are usually associated with monetary policy.
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Answer:
worsen
Explanation:
The portion of your health insurance paid by your employer:
Answers
Answer:
yes portion of your health insurance is paid by your employer
4-Strategy should focus PRIMARILY on the organization's: a. shareholders b. customers c. products d. employees
Answers
Answer:
b. customers
Explanation:
The organizational strategy can be understood as a plan that aims to develop action plans so that a company can achieve its objectives and goals, so it is correct to state that the strategy should focus primarily on the organization's customers.
A company exists to satisfy the desires and needs of potential customers, so that is the substantial reason for its existence and where its focus must be, of course, a strategy must understand the organizational whole, its internal and external environment including shareholders, products and employees, but the focus on the customer must be a priority, so that the company has acceptance, value and market positioning.
What's the difference between a checking account and a savings account?
A. A checking account has fewer fees.
B. A savings account comes with a debit card.
C. A savings account earns interest.
D. A checking account comes with a credit card.
Answers
Answer:
D. A checking account comes with a credit card.
Explanation:
A checking account is opened to facilitate regular bank transactions such as deposits, withdraws, cash transfers, payments, among others. There are no limits to the number of transactions that one can perform per period. Bank's fee and charges are applicable per transaction. To facilitate payments, withdrawals, and deposits, banks provide debit cards to customers.
Savings accounts are designed to help customers accumulate funds for future use. Banks limit withdrawals and offer interest payments to encourage customers to save. Savings accounts have fewer charges and don't come with debit cards.
Brianna is an intern working for a Mississippi state senator. She helps the senator draft new laws that will affect citizens in the whole state. Brianna's job falls into the _____ pathway of the Government and Public Administration cluster.
Governance
National Security
Foreign Service
Planning
Answers
Brianna's work falls within the governance path of the government and public administration cluster.
What is governance?It corresponds to the set of individuals, whether they are elected political representatives or workers involved in the area, whose central function is the development and execution of public policies, which are capable of directly affecting the lives of individuals.
Therefore, governance is an essential way for politics to understand the needs of individuals through the elaboration of public policies that protect their rights and increase the quality of life.
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Answer the following questions with explanation:
Before the coronavirus pandemic, the annual inflation rates in Canada used to be around 2%. However, the inflation rates are near 8% these days.
(i) What does it mean to have an annual inflation rate of 8% in Canada?
(ii) In general, explain how the monetary policy could be responsible for higher inflation rates.
(iii) In general, how could the central bank in Canada lower the inflation rates?
(iv) If the taxes are lowered in Canada, will that help lower or raise the inflation rates?
Answers
(i) An annual inflation rate of 8% in Canada means that, on average, prices for goods and services in Canada have increased by 8% over the past year.
Therefore, the purchasing power of the Canadian dollar is lower. A higher inflation rate means that Canadians have to spend more money to buy the same amount of goods and services than they would have had to spend a year ago.
(ii) The monetary policy can be responsible for higher inflation rates because the central bank controls the money supply in the economy. The central bank can increase the money supply by lowering interest rates, which makes borrowing cheaper, leading to increased spending, and increasing the demand for goods and services. This, in turn, can lead to higher prices. Conversely, the central bank can decrease the money supply by raising interest rates, which makes borrowing more expensive, leading to decreased spending, and decreasing the demand for goods and services. This can lead to lower prices.
(iii) The central bank in Canada could lower inflation rates by decreasing the money supply in the economy by increasing interest rates. When interest rates are high, borrowing is more expensive, leading to decreased spending and a decrease in the demand for goods and services. This, in turn, leads to lower prices.
(iv) Lowering taxes in Canada will most likely raise inflation rates because people will have more money to spend, which will increase demand for goods and services, and lead to higher prices. Therefore, lowering taxes will not help lower inflation rates.
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an operation receives an inspection report that notes a sanitation deficiency related to the employee restroom. what action should the manager take?
Answers
An operation receives an inspection report that notes a sanitation deficiency related to the employee restroom. Manager should Review the master cleaning schedule.
Sanitation describes factors that affect human health related to drinking water and "the treatment and disposal of sewage and sewage." By creating a clean environment that prevents the spread of diseases, especially through faces and mouth, the sanitation system seeks to protect human health. All places are full of people when we visit them, whether it is a market square, a park, an airport, a hospital, a theater, a train station, or a bus station.
Local authorities are responsible for maintaining a clean environment in public areas, but we can also support their efforts. By adopting some basic habits, we can improve sanitation in public places:
Do not throw trash in public places, including paper, food scraps, bags, dirty water bottles, etc.Garbage needs to be placed in appropriate bins. However, if there is no trash can nearby, we have to bring it home and put it in the trash can.We should not spit in public places.After eating a banana, you are not allowed to throw the peel in public or on the side of the road.Never take it easy on the side of the road.In public places, it is important to practice good hygiene since garbage can spread contamination. Insects and mosquitoes can breed in sewage left outside. Diseases such as cholera and dysentery are caused primarily by poor sanitation. Garbage production is a necessary part of human activities. However, we can control the quantity and quality of waste produced. We can help with proper waste disposal.
an operation receives an inspection report that notes a sanitation deficiency related to the employee restroom. Manager should Review the master cleaning schedule.
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influences of Business environment,
Answers
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
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You are planning a trip to Las Vegas and need to rent a car. After contacting the different car companies, you choose to go with the company that charges a $25 rental fee and $0.05 per mile that the car is driven. i. Deteine if the change in the number of miles driven is proportional to the change in the total cost of the rental car. Explain your reasoning. ii. Deteine if the number of miles driven is proportional the total cost of the rental car. Explain your reasoning. c. When baking chocolate chip cookies, you need 3 cups of flour per cup of sugar. i. Deteine if the change in the number cups of flour is proportional to the change in the number of cups of sugar. Explain your reasoning. ii. Deteine if the number of cups of flour is proportional to the number of cups of sugar. Explain your reasoning.
Answers
The change in the number of miles driven is not proportional to the change in the total cost of the rental car. This is because the cost per mile driven is constant at $0.05, regardless of the total number of miles driven.
The number of miles driven is directly proportional to the total cost of the rental car. This is because the cost per mile driven remains constant at $0.05. As the number of miles driven increases, the total cost of the rental car will increase proportionally. For example, driving twice the number of miles will result in twice the total cost. The change in the number of cups of flour is not proportional to the change in the number of cups of sugar. This is because the ratio of 3 cups of flour per cup of sugar remains constant regardless of the quantity. Therefore, a change in the number of cups of sugar will not result in a proportional change in the number of cups of flour. The number of cups of flour is directly proportional to the number of cups of sugar. This is because for every cup of sugar, there is a fixed ratio of 3 cups of flour.
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the market risk component of the total portfolio risk can be reduced by randomly adding stocks to the portfolio.
a. true b. false
Answers
The given statement "the market risk component of the total portfolio risk can be reduced by randomly adding stocks to the portfolio" is False because adding random stocks to a portfolio will not effectively reduce the market risk component of the total portfolio risk.
Market risk refers to the risk that an investment's value will decrease due to changes in the market. In other words, if the market as a whole goes down, the value of an investment in that market will go down as well. This is because most investments are tied to the performance of the market as a whole. If you add random stocks to a portfolio, you may be diversifying the portfolio, but you are not necessarily reducing the market risk component of the total portfolio risk.
To reduce market risk, you need to add stocks that are not closely tied to the performance of the market. These could include stocks from different sectors or industries or stocks that are impacted by different factors than the broader market. By adding these types of stocks to a portfolio, you can reduce the market risk component of the total portfolio risk. In summary, randomly adding stocks to a portfolio will not effectively reduce the market risk component of the total portfolio risk. Instead, you need to carefully select stocks that are not closely tied to the performance of the market in order to reduce this risk.
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What was one of the significant effects of traders from the arabian peninsula in the indian ocean network?
Answers
Harnessing the seasonal monsoon winds is one of the important consequences of traders from the Arabian Peninsula on the Indian Ocean network. Camels have been domesticated.
Trading across the Indian Ocean was made simpler by monsoon winds because they made it safer and more predictable. It was possible that without the monsoons, when people could only rely on sails and ocean liners, their products wouldn't arrive on time and would spoil, or that the ship would sink.
South Asians depend heavily on the monsoon for their everyday needs. The ability of sailing ships to go to distant nations was aided by the utilization of monsoon wind in the Indian Ocean for maritime trade. Hippalus is thought to have discovered the monsoon wind between AD 45 and AD 47.
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If the price of a hamburger is increased from $8 to $10, the price elasticity of demand equals ________. Use the midpoint formula.
Answers
The Price elasticity of demand is -3.
What is Price elasticity of demand?The Price elasticity of demand shows the change in consumption of a product in relation to its change in its price.
% change in price = (10-8) / ((10+8)/2)
% change in price = 2/9
% change in price = 22.22
% change in quantity = (1-2) / ((2+1)/2)
% change in quantity = -66.67
Price elasticity of demand = % change in quantity/% change in price
Price elasticity of demand = -66.67/22.22
Price elasticity of demand = -3
Hence, the Price elasticity of demand is -3.
Therefore, the Option 2 is correct.
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Calculate to the nearest 0.01% your annual percentage return (on a simple interest basis) if you had bought Apple stock in February and sold in June.
Answers
ANSWER: The nearest 0.01%, the annual percentage return (on a simple interest basis) is -0.61%.
To calculate the annual percentage return on a simple interest basis if you bought Apple stock in February and sold it in June, the following information is required; the buying price, selling price, and the number of days between the buying date and selling date.
The formula to calculate simple interest is as follows; Simple Interest = (P × r × t) / 100 Where; P = Principal (Initial Investment), r = Rate of interest, t = Time period. In this case, the buying price is the principal amount, the rate of interest is not applicable, and the time period is the number of days between February and June. To find the annual percentage return, we first find the daily rate of return and then multiply it by the number of days in a year.
Therefore, annual percentage return (on a simple interest basis) is given by; Annual Percentage Return = (Buying Price - Selling Price) / Buying Price x (365 / Number of Days). Let’s say that you bought 100 shares of Apple stock at $120 each on 1st February, and you sold them for $150 each on 30th June. The number of days between 1st February and 30th June is 149 days. Buying price = $120 per share, Selling price = $150 per share, Number of days = 149 days. Substituting the above values into the formula; Annual Percentage Return = ($120 - $150) / $120 x (365 / 149) = -0.25 x 2.45 = -0.6125. Multiplying by 100 to convert to a percentage, we get; Annual Percentage Return ≈ -0.61%. Therefore, to the nearest 0.01%, the annual percentage return (on a simple interest basis) is -0.61%.
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Even when internal control is weak, a significant portion of the audit work on property, plant, and equipment may be performed at an interim date.
TRUE or false
Answers
False. Even when internal control is weak, a significant portion of the audit work on property, plant, and equipment may not be performed at an interim date.
When internal control is weak, auditors typically need to perform more extensive testing and procedures to obtain sufficient assurance about the accuracy and completeness of financial statements. This includes the audit work on property, plant, and equipment. In such cases, auditors are likely to perform substantive procedures closer to the year-end rather than relying solely on interim testing. By conducting more extensive procedures at the year-end, auditors can gather more evidence to assess the valuation, existence, and completeness of property, plant, and equipment, ensuring that the financial statements are fairly presented. Interim procedures are generally used when the control environment is stronger and when the auditor believes that performing testing at an interim date is sufficient to provide reasonable assurance.
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How can ratio analysis be used to interpret financial statements?
Answers
In order to get insights into profitability, liquidity, operational effectiveness, and solvency, ratio analysis examines line-item information from a company's financial statements.
Ratio analysis allows you to compare one firm to another in the same sector or sector and track how one company has changed over time.
What is ratio analysis?Ratio analysis is a quantitative examination of the information included in the financial statements of an organization. Ratio analysis is the study or analysis of the line items included in the company's financial statements.
It can be used to evaluate a number of aspects of a business, including profitability, solvency, liquidity, and operational effectiveness.
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Why is a brand important to a business?
Answers
Item
Item
Muhammad is considering investing some of his hard-earned cash by opening a certificate of deposit.
Muhammad is disappointed to learn that If he invests
$500, he will likely only earn an additional
$9 a year from today. So, he decides to invest his funds somewhere that will generate more income for
him. Which of the following did Muhammad find unsatisfactory about the certificate of deposit? (1 point)
Item
Item
Item
O The risk of the investment was too high.
O The return on his investment was too low.
The liquidity of the investment was too high.
The liquidity of the investment was too low.
Answers
What Muhammad found unsatisfactory about the Certificate of deposit is that the return on the investment was too low.
Basically, a certificate of deposit is under a Short term investment instrument which yields low interest value for investors.
The Short term investment yields on investment are low because it is for short period of time and involves lesser risks. Other instruments under Short term investment includes Money market etc.
Therefore, the option C is correct because the Certificate of deposit was seen as unsatisfactory by Muhammad because the return on the investment was too low.
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Answer:
here are all the answers to this quick check
Explanation:
1. an individual purchases stock with the intent to sell it later at a higher price
2. The return on his investment was too low.
3. higher returns and higher liquidity than other investments
4. Elena could purchase multiple assets from multiple sources.
5. She might miss a better investment opportunity because real estate is not particularly liquid.
I just took it and got 5/5 hope this helps :)
Which situation would most likely cause a currency with a flexible exchange rate to increase in value?
Answers
Answer:
:A currency with a flexible exchange rate is one that is determined by supply and demand in the foreign exchange market. Therefore, the most likely situation that would cause a currency to increase in value is an increase in demand for that currency relative to its supply.
This can happen for a variety of reasons, such as an increase in foreign investment in the country, an increase in exports, or a decrease in the supply of the currency due to government intervention or a decrease in the money supply.
For example, if a country has a strong economy and is seen as a safe place to invest, foreign investors may want to buy more of that country's currency, causing its value to increase. Similarly, if a country's exports become more competitive due to a decrease in the value of its currency relative to other currencies, demand for that currency may increase, causing its value to rise.