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It should not be more than 1.5. If book value is more than price then margin of safety is there. The share price can be higher than book value but not more than 1.5.
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∙ 11y ago
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What is the ideal acid test ratio?
some where between 1 to 1.5
What is the formula of asset backing ratio?
Book Value of Shares divided by paidup Valur of Shares.
Fixed operating cost 500 thousands dollars its variable costs are 3 dollars per unit and product sales price is 4 dollars what is the company break even point?
Break even point = Fixed cost / contribution margin ratio Contribution margin ratio = (Sales price - variable cost ) sales price Contribution margin ratio = (4 - 3 ) / 4 = 25% Break even point = 500,000 / .25 Break even point = 2,000,000
Produce 60000 variable costs equal 50 percent fixed costs total 120000 what price stero sold to achieve EBIT of 95000?
Breakeven point = Fixed cost + EBIT / contribution margin ratio Contribution margin ratio = sales price - variable cost Contribution margin ratio = 1 - 0.5 = 0.5 or 50% Breakeven point = 215000 / .5 = 430000
How to compute after tax salvage value?
Salvage Value - [Tax * (Market Value - Book Value)
What is the ideal ratio of all accounting ratio?
There is no single ideal ratio.
Why do you use Price-to-book value ratio for analyzing a bank?
Its fun.
What is a stock multiple?
A stock multiple is the ratio of a stock's price to various other financial measures. Most commonly used are price-to-book, which is the total value of a company's stock vs. its book value, and price-to-earnings or PE ratio.
How do you calculate the transformer turns ratio?
For an ideal transformer, the voltage ratio is the same as its turns ratio.
Common-mode rejection ratio of an ideal amplifier?
The common mode rejection ratio of an ideal amplifier is infinity.
What is ideal quick ratio?
A quick ratio of 1 is regarded as ideal and demonstrates good liquidity within the business
What is ideal quick ratio of a firm?
Quick ratio means
What is market price per share divided by book value per share?
market/book ratio (M/B)
Stockholders equity is 3.75 billion and price earnings ratio is 3.5 common shares outstanding are 50 million and market book ratio is 1.9 what is the price of a share of common stock?
142.5
What is ideal ratio?
There are different ideal ratios for different situations. For example, the ideal ratio of hydrogen to oxygen atoms, in water, is 2:1. The ideal ration for sodium and chlorine atoms for salt is 1:1.
What is the ideal motorbike to rider weight ratio?
The ideal motorbike to rider weight ratio is 0.07. The closer the ratio is to zero, the more it feels like one is riding without the motorbike weight, just the rider's.
Banks current ratio should be how much?
The ideal current ratio for banks 1.33 : 1
