107 720
Assignments Done
96.3%
Successfully Done
In April 2024
In April 2024
Your physics assignments can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Physics
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Math
Our experts will gladly share their knowledge and help you with programming projects. Keep up with the world’s newest programming trends.
Programming
Answer to Question #5968 in Economics of Enterprise for Lamarcus Streeter
Question #5968
Which of the following statements is CORRECT?
a. Typically, a firm’s DPS should exceed its EPS.
b. Typically, a firm’s EBIT should exceed its EBITDA.
c. If a firm is more profitable than average (e.g., Google), we would normally expect to see its stock price exceed its book value per share.
d. If a firm is more profitable than most other firms, we would normally expect to see its book value per share exceed its stock price, especially after several years of high inflation.
e. The more depreciation a firm has in a given year, the higher its EPS, other things held constant.
a. Typically, a firm’s DPS should exceed its EPS.
b. Typically, a firm’s EBIT should exceed its EBITDA.
c. If a firm is more profitable than average (e.g., Google), we would normally expect to see its stock price exceed its book value per share.
d. If a firm is more profitable than most other firms, we would normally expect to see its book value per share exceed its stock price, especially after several years of high inflation.
e. The more depreciation a firm has in a given year, the higher its EPS, other things held constant.
Expert's answer
c. If a firm is more profitable than average (e.g., Google), we would normally expect
to see its stock price exceed its book value per share.
For the most part the book value really doesn't tell us a whole lot. Cory's Tequila Co.
is trading at over $100 and the BV is only $3.57? What is up with that? Well BV
is considered to be the accounting value of each share, drastically different
than what the market is valuing the stock at. And the truth is that market and
book value have nothing in common. Market value is what the investment
community's expectations are and book value is based on costs and retained
earnings. One situation where BV can be useful is if the market value is trading
below the book value, this rarely happens, but if it does it could mean that the
company is undervalued and might be an attractive buy.
to see its stock price exceed its book value per share.
For the most part the book value really doesn't tell us a whole lot. Cory's Tequila Co.
is trading at over $100 and the BV is only $3.57? What is up with that? Well BV
is considered to be the accounting value of each share, drastically different
than what the market is valuing the stock at. And the truth is that market and
book value have nothing in common. Market value is what the investment
community's expectations are and book value is based on costs and retained
earnings. One situation where BV can be useful is if the market value is trading
below the book value, this rarely happens, but if it does it could mean that the
company is undervalued and might be an attractive buy.
Learn more about our help with Assignments: Economics of Enterprise
-
![Help me with my assignment!]()
Who Can Help Me with My Assignment
There are three certainties in this world: Death, Taxes and Homework Assignments. No matter where you study, and no matter…
-
![How to finish assignment]()
How to Finish Assignments When You Can’t
Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for.…
-
![Math Exams Study]()
How to Effectively Study for a Math Test
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
Comments
Leave a comment