A company with a market-to-book ratio less than one is expected to grow it cash flow...
A company with a market-to-book ratio less than one is expected to grow it cash flow quickly. Question 6 options: True False
Homework Answers
False
Market value of the company is the present value of free cash flows
Market to book ratio of less than 1 represents poor condition of the company and hence, reflects lower growth prospects for the company. Hence, the answer is FALSE.
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A company with a market-to-book ratio less than one is expected
to grow it cash flow...
if a company market to book ratio is less than 1 ,the market value added must...
if a company market to book ratio is less than 1 ,the market value added must be negative - true or false
1. If a stock has a market beta less than 1, the expected return will be...
1. If a stock has a market beta less than 1, the expected return will be less than expected return of market portfolio. True or False? 2. ABC, Inc., has a beta of 1.99. The risk-free rate is 3.45% and the market risk premium is 5.74%. What is the required rate of return on ABC's stock? Note: Convert your answer to percentage and round off to two decimal points. 3. Semi-strong-form efficient markets are not weak-form efficient. True or False?
A company is expected to generate $50 million cash flow next year and the cash flow...
A company is expected to generate $50 million cash flow next year and the cash flow is predicted to grow at 3% each year. Assume the required return for the company is 11%. What is the estimated intrinsic value of the company? Select one: a. $575 million b. $600 million c. $625 million d. $600 million
QUESTION 16 The pre-money valuation of Pinterest on June 6, 2017 was approximately $2 billion less than the valuation of Pinterest at the $19 pe share IPO price. True False QUESTION 17 The operating...
QUESTION 16 The pre-money valuation of Pinterest on June 6, 2017 was approximately $2 billion less than the valuation of Pinterest at the $19 pe share IPO price. True False QUESTION 17 The operating activities of Pinterest were a use of cash rather than a source of cash in 2017 and 2018. True False QUESTION 18 The global advertising market is projected to grow to $1 trillion in 2022 from $964 billion in 2018, representing a 5% compound annual growth...
The PVA methodology cannot be used if the time until the first cash flow is less...
The PVA methodology cannot be used if the time until the first cash flow is less than the time of maturity. a. True b. False
Why is the market value of equity (stock) in a firm facing bankruptcy less than the...
Why is the market value of equity (stock) in a firm facing bankruptcy less than the book value of its equity? Choose all that are correct: Question 4 options: The current market value reflects the expected payout to equity holders in a bankruptcy; this payout may be $0.0. The firm must pay off all of its its liabilities before any money can be paid to equity holders. There is likely to be no money left after paying off the liabilities....
QUESTION 12: The higher the times interest earned, the better. True False QUESTION 13: The market...
QUESTION 12: The higher the times interest earned, the better. True False QUESTION 13: The market to book ratio and price earnings ratio indicate the firm's liquidity the firm's ability to quickly liquidate investments and turn them into cash the firm's efficiency in generating funding by selling their common stock market sentiment toward the firm
The book value of an asset is the historical cost of the asset less the accumulated...
The book value of an asset is the historical cost of the asset less the accumulated depreciation. True False Question 11 ( 20 Points Petry Corp. is a growing company with sales of $1.25 million this year. The firm expects to grow at an annual rate of 25 percent for the next three years, followed by a growth of 20 percent per year for the next two years. What will be Petry's sales at the end of five years? (Round...
15. Company A has a cash ratio of 0.25 and Company B has a cash ratio...
15. Company A has a cash ratio of 0.25 and Company B has a cash ratio of 0.72. Also, company A's stock is traded at an average daily volume of 100 million shares and with a bid-ask spread of 1 cent. Company B's stock is traded at an average daily volume of 5 million shares and with a bid-ask spread of 5 cents. Which of the following is most likely to be true? A) Company A is stock is more...
Kelly Company has a current ratio greater than 1 and an acid-test ratio less than 1....
Kelly Company has a current ratio greater than 1 and an acid-test ratio less than 1. how would cash payments to suppliers to reduce accounts payable affect these ratios? current ratio quick ratio a. decreased decreased b. decreased increased c. increased decreased d. increased increased
QUESTION 16 The pre-money valuation of Pinterest on June 6, 2017 was approximately $2 billion less than the valuation of Pinterest at the $19 pe share IPO price. True False QUESTION 17 The operating activities of Pinterest were a use of cash rather than a source of cash in 2017 and 2018. True False QUESTION 18 The global advertising market is projected to grow to $1 trillion in 2022 from $964 billion in 2018, representing a 5% compound annual growth...
The book value of an asset is the historical cost of the asset less the accumulated depreciation. True False Question 11 ( 20 Points Petry Corp. is a growing company with sales of $1.25 million this year. The firm expects to grow at an annual rate of 25 percent for the next three years, followed by a growth of 20 percent per year for the next two years. What will be Petry's sales at the end of five years? (Round...
15. Company A has a cash ratio of 0.25 and Company B has a cash ratio of 0.72. Also, company A's stock is traded at an average daily volume of 100 million shares and with a bid-ask spread of 1 cent. Company B's stock is traded at an average daily volume of 5 million shares and with a bid-ask spread of 5 cents. Which of the following is most likely to be true? A) Company A is stock is more...
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