Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
4th Edition
ISBN: 9780134083278
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Chapter 2, Problem 38P
a)
Summary Introduction
To determine: The comparison on the market capitalization-to-revenue of Company U and Company S.
Introduction:
The market capitalization-to-revenue is otherwise known as 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)
Summary Introduction
To determine: The comparison on 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 price-to-sales ratio where instead of market capitalization-to-revenue, the enterprise value-to-revenue is used.
c)
Summary Introduction
To discuss: The best comparison among Company U and Company S.
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Chapter 2 Solutions
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Ch. 2.1 - Prob. 1CCCh. 2.1 - Prob. 2CCCh. 2.2 - Prob. 1CCCh. 2.2 - Prob. 2CCCh. 2.2 - Prob. 3CCCh. 2.3 - What it is the difference between a firms gross...Ch. 2.3 - What is the diluted earnings per share?Ch. 2.4 - Prob. 1CCCh. 2.4 - Prob. 2CCCh. 2.5 - Prob. 1CC
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