Answer:
The correct answer is letter "B": maximize the current value per share of the existing stock.
Explanation:
Financial management comprises several steps to safeguard a company's assets and sustain the firm's profitability in favor of its stakeholders. Those steps include planning, budgeting, managing and assessing risks and establishing the procedures that will be taken to keep the business going.
Thus, <em>one of the cores of financial management is to increase the company's stock value to attract more investors, bringing more money to the company for reinvestment or the payment of expenditures.</em>
Effectiveness means producing the desired result with an application of minimum effort, expense, and waste.
<h3>What is effectiveness?</h3>
When a firm or a producer produces goods or services by application of the available resources in the best possible way, ensuring their optimum utilization, the firm is engaged in bringing effectiveness in production.
Hence, option B holds true regarding effectiveness.
Learn more about effectiveness here:
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Answer:
(a) 14%
(b) 15%
(c) 15.48%
Explanation:
cost of retained earnings:
= ($3.03 ÷ $34) + 0.05
= 0.09 + 0.05
= 14%
Therefore, the Evanec's cost of retained earnings is 14%
Flotation cost percentage:
= [($34 - $28.90) ÷ $34] × 100
= 0.15 × 100
= 15%
Therefore, the Evanec's percentage flotation cost is 15%.
Cost of new common stock:
= ($3.03 ÷ $28.90) + 0.05
= 0.1048 + 0.05
= 15.48%
Therefore, the Evanec's cost of new common stock is 15.48%.
Answer:
55,060 machines
Explanation:
Projected sales = 54,500
Estimated opening balance = 6,860
Desired ending balance = 7,420
Budgeted production = ?
Let the budgeted production be B
Using the formula
Opening balance + Budgeted production - Sales = Closing balance
6,860 + B - 54,500 = 7,420
B = 7,420 + 54,500 - 6,860
B = 55,060
The budgeted production for the year is 55,060 machines.
Answer:
The Maigold's free cash flow can be calculated using the below formula:
Cash Provided by Operations-Capital expenditure-Dividends paid
Explanation:
Cash provided by operations $21700
Capital expenditure ($10100)
Dividends paid ($3500)
Free cash flow of Maigold's $8100
