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.

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Answer 1

Question

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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Answer 2

Question

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.

Expert Solution & Answer

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Answer 3

Question

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.

Expert Solution & Answer

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Answer 4

Question

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.

Expert Solution & Answer

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Answer 5

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.

Answer 6

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.

Answer 7

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.

Answer 8

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.

Answer 9

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.

Answer 10

c)

Summary Introduction

To discuss: The best comparison among Company U and Company S.

Answer 11

c)

Summary Introduction

To discuss: The best comparison among Company U and Company S.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 2.1 - Prob. 1CC Ch. 2.1 - Prob. 2CC Ch. 2.2 - Prob. 1CC Ch. 2.2 - Prob. 2CC Ch. 2.2 - Prob. 3CC Ch. 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. 1CC Ch. 2.4 - Prob. 2CC Ch. 2.5 - Prob. 1CC

Solution Summary: The author compares the market capitalization-to-revenue ratio of Company U and Company S.

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