a)
To determine: Comparison of the market capitalization-to-revenue of Company U and Company S.
Introduction:
The market capitalization-to-revenue is otherwise known as the price to sales ratio. It compares the stock price of the company to its revenue.
The dollar value of a company’s outstanding shares is termed as market capitalization. It is also known as market cap.
b)
To determine: Comparison of the enterprise value-to-revenue ratio of Company U and Company S.
Introduction:
The enterprise value of the company is divided by the company’s revenue. This ratio is an expansion of the price-to-sales ratio, where instead of the market capitalization-to-revenue the enterprise value-to-revenue is used.
c)
To discuss: The best comparison between Company U and Company S.
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