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NEW QUESTION: 1
Assume the following information about a publicly traded automobile manufacturer:
Revenue: $16,000,000
Cash flow: $1,700,000
Net worth per share: $14.55
Current stock price: $30.25 per share
Number of common shares outstanding: 1,300,000
Using this information, what are the price-to-sales, price-to-book, and price-to-cash flow ratios, respectively?
A. 2.46, 0.48, 23.21
B. None of these answers is correct.
C. 1.18, 2.08, 23.13
D. 2.46, 2.08, 23.13
E. The answer cannot entirely be calculated from the information provided.
F. 1.18, 2.08, 23.13
Answer: D
Explanation:
Explanation/Reference:
Explanation:
To calculate the price-to-sales ratio, divide the market price of a common stock by its sales-per share figure. The equation for the price-to-sales ratio is as follows:
Price-to-sales ratio = [P0 / sales per share].
Incorporating the given information into this equation will yield the following:
Price-to-sales ratio = [$30.25 / ($16,000,000 / 1,300,000)] = 2.4578
The calculation of the price-to-book ratio involves dividing the market price of a common stock by its net worth per share. The equation for the price-to-book ratio is as follows:
Price-to-book ratio = [P0 / net worth per share].
Where: net worth per share = (total assets - total liabilities) / # of common shares outstanding.
In this example, the net worth figure has been converted to a per-share basis, and the calculation of the price-to-book ratio is straightforward:
Price-to-book ratio = ($30.35 / $14.55) = 2.0859
The calculation of the price-to-cash flow ratio involves dividing the market price of a common stock by the cash-flow-per-share figure. The calculation of the price-to-cash flow ratio is as follows:
Price-to-cash flow = (P0 / cash flow per share)
Incorporating the given information into this equation will yield the following:
Price-to-cash flow = [$30.35 / (1,700,000 / 1,300,000)] = 23.132

NEW QUESTION: 2
What is determined on the basis of past data for the price parameter?
A. Profit centers
B. Historical volatility
C. Statistical orders
D. Statistical projects
Answer: B

NEW QUESTION: 3
What are components of identity access management in Pivotal Cloud Foundry?
A. Event logging and monitoring
B. Releases and stemcells
C. Application security groups and firewalls
D. Tokens and SSO
Answer: D

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