The P/E multiple and EVA approach and their use to value a common stock. Introduction: P/E Multiple: The term used for price/earnings multiple reflects the market price of a stock as the times of earnings per share of that company. It determines the investors’ willingness towards the current market price of the stock. Economic Value Added (EVA): It is a measure to evaluate a company’s stock based on the economic value it has added at a specified time. It considers the opportunity costs of capital invested in the business and the net operating profit generated by the business.

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1. Give one new distribution channels for Virtual Assistance (freelance business) that is not commonly used. - show a chart/diagram to illustrate the flow of the distribution channels. - explain the rationale behind it. (e.g., increased market reach, improved customer experience, cost-efficiency). - connect the given distribution channel to the marketing mix: (How does it align with the overall marketing strategy? Consider product, price, promotion, and place.). - define the target audience: (Age, gender, location, interests, etc.). - lastly, identify potential participants: (Wholesalers, retailers, online platforms, etc.)

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Chapter 9, Problem 7Q

Summary Introduction

To explain: The P/E multiple and EVA approach and their use to value a common stock.

Introduction:

P/E Multiple: The term used for price/earnings multiple reflects the market price of a stock as the times of earnings per share of that company. It determines the investors’ willingness towards the current market price of the stock.

Economic Value Added (EVA): It is a measure to evaluate a company’s stock based on the economic value it has added at a specified time. It considers the opportunity costs of capital invested in the business and the net operating profit generated by the business.

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1. Give one new distribution channels for Virtual Assistance (freelance business) that is not commonly used. - show a chart/diagram to illustrate the flow of the distribution channels. - explain the rationale behind it. (e.g., increased market reach, improved customer experience, cost-efficiency). - connect the given distribution channel to the marketing mix: (How does it align with the overall marketing strategy? Consider product, price, promotion, and place.). - define the target audience: (Age, gender, location, interests, etc.). - lastly, identify potential participants: (Wholesalers, retailers, online platforms, etc.)

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