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1 year 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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Torino Company has 2,800 shares of $50 par value, 6.5% cumulative and nonparticipating preferred stock and 28,000 shares of $10

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Answer:

The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is $10,200.

Explanation:

In order to calculate the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is , we have to make the following calculations.

First, we have to calculate the Annual preferred dividend = (2800*50*6.5%) = $9,100

Hence, First year preferred dividend = $9,100-$8,000 = $1,100

Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.

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3 years ago

A customer buys $10,000 of 30 year corporate bonds with 10 years left to maturity at 92. The customer elects not to accrete the

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Answer:

no capital gain or loss

Explanation:

A customer buys $10,000 of 30 year corporate bonds with 10 years left to maturity at 92. The customer elects not to accrete the discount annually. At maturity, the customer will have no capital gain or loss.

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3 years ago

During the current year, Harold Company sold inventory costing $350,000 for a selling price of $675,000. Beginning balances of i

Len [333]

Answer: $351,000

Explanation:

Given that,

Cost of inventory = $350,000

Selling price = $675,000

Beginning balance of inventory = $86,000

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ending balance of inventory = $94,000

ending balance of accounts payable = $123,000

Cash paid to suppliers:

= Cost of Goods Sold + Change in inventory - Change in accounts payable

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= 350,000 + 8,000 - 7,000

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3 years ago

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olya-2409 [2.1K]

Answer:

-2.5

Explanation:

Elasticity of demand measure the responsiveness of demand against the change in price of the product. It shows how much demand changes if there is the change in price.

Change in Quantity = ( S2 - S1 ) / [ ( S2 + S1 )/2 ]

Change in Quantity = ( 800 - 1,000 ) / [ ( 800 + 1,000 )/2 ]

Change in Quantity = -200 / 900

Change in Quantity = -0.2222222

Change in price = ( P2 - P1 ) / [ ( P2 + P1 )/2 ]

Change in price = ( $35 - $32 ) / [ ( $35 + $32 )/2 ]

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