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2 years ago

Why would the threat of a takeover motivate a manager to act in stockholders' interest?

1 answer:

3 0

Running the firm well and acting in the stockholders' interest makes the firm a less attractive takeover target, to begin with.

<h3>Who are Stockholders?</h3>

A shareholder of a corporation is an individual or legal entity that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation.
Shareholders may be referred to as members of a corporation.
As noted above, a shareholder is an entity that owns one or more shares in a company's stock or mutual fund.
Being a shareholder (or a stockholder as they're also often called) comes with certain rights and responsibilities.

<h3>Which of the following mechanisms is used to motivate managers to act in the interests of shareholders? </h3>

The threat of a takeover

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Suppose Joe is maximizing total utility within his budget constraint. If the price of the last pair of jeans purchased is $25 an

inessss [21]

Answer:

80 units

Explanation:

Given:

Price: $25 we have: 100 units
Price: $20, how many units to maximize the total utility

Let X is the number of units we need to find

As we know that, the law of equal-marginal utility a consumer spends his or her income among goods so that utilities receive from the amount spent is equal. So we use a simple rule of three:

$25 100 units of utility

$20 X

<=> 25X = 20*100

<=> X = 80 units

Hope it will find you well.

6 0

3 years ago

Suppose the earnings per share of a stock is $2 and the current price/earnings (p/e) ratio is 10. what is the current price of t

Brums [2.3K]

The current price of the stock = $20

<h3>What is stock?</h3>

The division of ownership of a corporation or company into shares is known as stock. Depending on the total number of shares, one share of stock represents a fractional ownership interest in the company.

<h3>What is mathematical operation?</h3>

An operation is a function in mathematics that converts zero or more input values, also known as operands, into a clearly defined output value. The operation's complexity is determined by the number of operands, sometimes referred to as arguments.

<h3>According to the given information:</h3>

The earnings per share of a stock is = $2

the current price/earnings (p/e) ratio is = 10

the current price of the stock = P/E

10 = P/2

P = 10*2

P = 20

The current price of the stock = $20

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3 0

2 years ago

What are operating expenses?

skad [1K]

Answer:

see below

Explanation:

Operating expenses are the cost a business incurs while engaging in its normal business operations. They are the costs not directly be attached to the production process. A business incurs operating expenses in managing it day to day activities. They exclude one time expenses such as judgment cost, accounts adjustments, and other non-recurring costs.

Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries, employee benefits, transport, depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.

3 0

4 years ago

Ideally, any group you join for business promotion should have at least how many members?

Sunny_sXe [5.5K]

Answer:

........500 members.........

Explanation:

4 0

4 years ago

Charlie the cat stole $20 from his cat mom. He's planning on spending the money he stole on catnip (Q1) and dental treats (Q2).

RideAnS [48]

Answer:

$ 20= Q1 (0.5 ) + Q3( 3)

Explanation:

Total Amount = $ 20

Dental treats Q2= $ 3

Catnip Q1= $ 0.50

Maximum no of Dental Treats he can get is = $ 20 /$3= 6.66

If he gets maximum dental treats i.e 6 , $18 will be spent (3*6)

He will be left with = $ 20- $ 18= $ 2

The maximum no of catnip he can get after buying 6 dental treats from $ 2= $ 2/$0.5= 4

Let Q1 denote the catnip and Q3 denote the dental treats then the equation would be like

$ 20= Q1 (0.5 ) + Q3( 3)

So putting the values for q1=0,1,2,3,4,5,6,7,8,9,10

for values 0-4 Q3 will be $ 18

for values 4-6 Q3 will be $ 15

for values 6-8 Q3 will be $ 12

From values Zero on wards the budget constraint will be a slope but after value 4 the change will be after every two points.

The slope will look like the one given in the diagram.

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6 0

3 years ago