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2 years ago

Financial managers should strive to maximize the current value per share of the existing stock to:_____.

1 answer:

6 0

Financial managers should strive to maximize the current value per share of the existing stock to represent the interests of the current shareholders.

<h3>What is the functions of the Financial managers?</h3>

Financial managers can be described as the type of managers that are responsible for the financial health of an organization.

They help in the creation of the financial reports as well as directing investment activities, and develop plans , hence Financial managers should strive to maximize the current value per share of the existing stock to represent the interests of the current shareholders.

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Which of the following would violate the efficient market hypothesis?

jeyben [28]

The efficient market theory would be violated if investors earned extraordinary returns months after a company announced unexpected profits. Thus, the correct option is (d.) Investors earn abnormal returns months after a firm announces surprise earnings.

<h3>What exactly is the hypothesis of an efficient market?</h3>

The efficient-market hypothesis is a financial economics concept that asserts asset prices represent all available information. Because market prices should only react to fresh information, it is impossible to continually "beat the market" on a risk-adjusted basis.

Because the EMH is expressed in terms of risk adjustment, it can only offer testable predictions when combined with a specific risk model. As a result, financial economics research has focused on market anomalies, or departures from specified risk models, since at least the 1990s.

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4 0

1 year ago

Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock opti

muminat

Answer:

1.$12,000,000

2.31-Dec-2021

Dr Compensation expense $6,000,000

Cr Paid-in-capital-stock options $6,000,000

31-Dec-2022

Dr Compensation expense $6,000,000

Cr Paid-in-capital-stock options $6,000,000

Explanation:

1.)

Total compensation cost of stock options = Estimated fair market value of the option x Number of options granted

=$3 x 4,000,000 shares

=$12,000,000

Therefore total compensation cost of stock options is $12,000,000

2. to 4.) Journal Entries

31-Dec-2021

Dr Compensation expense $6,000,000

Cr Paid-in-capital-stock options $6,000,000

31-Dec-2022

Dr Compensation expense $6,000,000

Cr Paid-in-capital-stock options $6,000,000

Compensation expense

= Total compensation cost of stock options/Vesting period

=$12,000,000/2 years

=$6,000,000

3 0

4 years ago

Which of the following is not the type of work done in a support department? c. maintenance work done to keep production machine

Murljashka [212]

Answer:

a. production work on an assembly line that makes a product

Explanation:

A support department refers to a section of an organization that comprises of employees who are saddled with the responsibility of providing timely and professional assistance to other core departments such as the production department.

This ultimately implies that, the support department provides assistance such as maintenance work done to keep production machines running smoothly, safety and security services provided to keep the production facility safe and janitorial services provided for the production facility.

Hence, any production work on an assembly line that makes a product is not a type of work done in a support department because all production work is solely being performed by the production department.

7 0

3 years ago

You are the regional sales manager for Standard Publishing Co. The company is preparing adjusting entries for the year ended Mar

solniwko [45]

Answer:

Standard Publishing Co.

The amount of subscription revenue that should be reported on the income statement for the year ended March 31, 2021 is:

= $35,000.

Explanation:

a) Data and Calculations:

September 1, 2020 Cash receipt for magazine subscriptions for three years = $180,000

This subscriptions is equal to 36 months subscription.

The amount of subscription revenue to report for the year ended March 31, 2021 = $35,000 ($180,000 * 7/36).

From the above calculation, a month's subscription revenue = $5,000 ($180,000/36)

Therefore, seven months' subscription from September 1, 2020 to March 31, 2020 = $35,000 ($5,000 * 7).

The unearned subscription revenue is debited with $35,000, while earned subscription revenue is credited with the same amount.

8 0

3 years ago

Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 5.25% per

kari74 [83]

Answer:

$45.47

Explanation:

Data provided as per the given question below:-

Stock's Current Price = $35.25

Growth rate = 5.25%

Years = 5

The computation of stock's expected price is shown below:-

Stock's expected price = Stock's Current Price × (1 + growth rate)^5

= $35.25 × (1 + 5.25%)^5

= $35.25 × (1.0525)^5

= $35.25 × 1.29

= $45.47

6 0

3 years ago