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2 years ago

The goal of the managers of a publicly owned company should be to maximize the firm’s.

Business

1 answer:

Rainbow [258]2 years ago

7 0

The goal of the managers of a publicly owned company should be to maximize the firm’s common stock value.

<h3>What is a publicly owned company?</h3>

A public company, also known as a publicly traded company, publicly owned company, publicly listed company, or public limited company, is a company whose stock is freely listed on a stock exchange or in over-the-counter marketplaces.
A public (publicly traded) company may or may not be listed on a stock exchange (listed company), which facilitates share trading (unlisted public company).
Public companies of a certain size must be listed on an exchange in some jurisdictions.
In most cases, public companies are private enterprises in the private sector, and the term "public" emphasizes their public market reporting and trading.
A publicly traded company's managers should strive to maximize the firm's common stock value.

Therefore, the goal of the managers of a publicly owned company should be to maximize the firm’s common stock value.

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The adjusted trial balance of Cheyenne Company shows the following data pertaining to sales at the end of its fiscal year, Octob

LenaWriter [7]

Answer:

<u>Cheyenne Company</u>

Amount in $ Amount in $

Sales revenue 728,400

Less;

Sales Returns and Allowances 25,320

Sales Discounts 12,380

Net sales <u> 690,700</u>

Explanation:

The revenue section of the income statement shows the computation of the net sales which is the result of the total sales less sales returns, discounts and allowances.

7 0

3 years ago

The additional utility a person receives from consuming an additional unit of a good or service is known as?

dmitriy555 [2]

The additional utility a person receives from consuming an additional unit of a good or service is known as Marginal Benefit.

<h3>What is service?</h3>

Services are referred as a type of product that is offered to someone in terms of facilities like the one received in a restaurant or shopping mall. It is a type of commodity or product that is intangible in nature, one can only feel it.

The additional utility a person receives from consuming an additional unit of a good or service is known as Marginal Benefit. Any activity can have its net benefit increased by selecting the amount at which marginal utility equals marginal expense.

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6 0

1 year ago

A hedge fund with $1 billion of assets charges a management fee of 2% and an incentive fee of 20% of returns over a money market

iren [92.7K]

Missing information:

a. −5%

b. 0

c. 5%

d. 10%

Answer:

a. only management fees = $20,000,000

b. only management fees = $20,000,000

c. only management fees = $20,000,000

d. $30,000,000 (management fees + $10 million incentive fee)

Explanation:

management fee 2%

incentive fee 20% of returns if total returns are over 5%

common fees for every situation (managers always win even if investors lose):

$1,000,000,000 x 2% = $20,000,000

a. −5% , no incentive fee

b. 0 , no incentive fee

c. 5% , no incentive fee

d. 10%, incentive fee = (10% - 5%) x 20% x $1,000,000,000 = $10,000,000

6 0

3 years ago

Identify each person in the table as structurally, frictionally, or cyclically unemployed.

Soloha48 [4]

Answer:

a. Structurally unemployed.

b. Cyclically unemployed.

c. Frictionally unemployed.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;

I. Natural Rate of Unemployment (NU).

II. Frictional unemployment rate (FU).

III. Structural unemployment rate (SU).

IV. Actual unemployment rate (AU).

V. Cyclical unemployment rate (CU).

a. Structurally unemployed: Lorenzo recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.

b. Cyclically unemployed: Teresa is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full time job. A cyclical unemployment can be defined as a type of unemployment which is typically related to changes in the business, economy or industry cycle such as recession, governmental policies etc.

c. Frictionally unemployed: Neha just graduated from college and is looking for a full- time position with an investment banking firm.

6 0

3 years ago

A company estimates that 0.7% of their products will fail after the original warranty period, but within two years of the purcha

Usimov [2.4K]

Answer:

The company's expected value of each warranty sold = $45.55

Explanation:

x = Resulting value for the company of replacing a failed product = Price two-year-extended warranty - Replacement cost = $48 - $350 = -$302

y = Resulting value for selling extended warranty to a product that does not fail = Price two-year-extended warranty = $48

Px = Probability of X occurring = 0.7%

Py = Probability of y occurring = 100% - Px = 100% - 0.7% = 99.30%

Therefore, we have:

The company's expected value of each warranty sold = (x * Px) + (y * Py) = ((-$302) * 0.7%) + ($48 * 99.30%) = $45.55

8 0

3 years ago