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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Answer:
$172,215,844 is the cost when flotation costs are considered
Explanation:
<em>flotation</em>
Weighted average flotation cost = {(Flotation cost debt * Weight debt) + (Flotation cost equity * Weight equity)
= (8% * 0.30) + (15% * 0.70)
=0.024 + 0.105
= 0.129
= 12.9%
Calculation of the cost of funds
Cost of funds = Amount raised / (1 - Weighted average floatation cost)
= $150,000,000 / (1-0.129)
= $150,000,000 / (0.871)
=$172,215,844
Therefore, the cost of raising fund is $172,215,844
The equilibrium price is the only price where the desires of consumers and the desires of producers agree—that is, where the amount of the product that consumers want to buy (quantity demanded) is equal to the amount producers want to sell (quantity supplied).
When two lines on a diagram cross, this intersection usually means something. On a graph, the point where the supply curve (S) and the demand curve (D) intersect is the equilibrium.
What Is a Demand Schedule?
In economics, a demand schedule is a table that shows the quantity demanded of a good or service at different price levels. A demand schedule can be graphed as a continuous demand curve on a chart where the Y-axis represents price and the X-axis represents quantity.
An example from the market for gasoline can be shown in the form of a table or a graph. A table that shows the quantity demanded at each price, such as Table 1, is called a demand schedule.
Price (per gallon) Quantity Demanded (millions of gallons)
$1.00 800
$1.20 700
$1.40 600
$1.60 550
$1.80 500
$2.00 460
$2.20 420
Table 1. Price and Quantity Demanded of Gasoline
Supply schedule
again using the market for gasoline as an example. Like demand, supply can be illustrated using a table or a graph. A supply schedule is a table, like Table 2, that shows the quantity supplied at a range of different prices. Again, price is measured in dollars per gallon of gasoline and quantity supplied is measured in millions of gallons.
Price (per gallon) Quantity Supplied (millions of gallons)
$1.00 500
$1.20 550
$1.40 600
$1.60 640
$1.80 680
$2.00 700
$2.20 720
Table 2. Price and Supply of Gasoline
Equilibrium price
gallon) Quantity demanded (millions of gallons) Quantity supplied (millions of gallons)
$1.00 800 500
$1.20 700 550
$1.40 600 600
$1.60 550 640
$1.80 500 680
$2.00 460 700
$2.20 420 720
Table 3. Price, Quantity Demanded, and Quantity Supplied
Because the graphs for demand and supply curves both have price on the vertical axis and quantity on the horizontal axis, the demand curve and supply curve for a particular good or service can appear on the same graph. Together, demand and supply determine the price and the quantity that will be bought and sold in a market.
The equilibrium price is the only price where the plans of consumers and the plans of producers agree—that is, where the amount of the product consumers want to buy (quantity demanded) is equal to the amount producers want to sell (quantity supplied). This common quantity is called the equilibrium quantity. At any other price, the quantity demanded does not equal the quantity supplied, so the market is not in equilibrium at that price.
In Figure 3, the equilibrium price is $1.40 per gallon of gasoline and the equilibrium quantity is 600 million gallons. If you had only the demand and supply schedules, and not the graph, you could find the equilibrium by looking for the price level on the tables where the quantity demanded and the quantity supplied are equal.
The word “equilibrium” means “balance.” If a market is at its equilibrium price and quantity, then it has no reason to move away from that point. However, if a market is not at equilibrium, then economic pressures arise to move the market toward the equilibrium price and the equilibrium quantity.
Imagine, for example, that the price of a gallon of gasoline was above the equilibrium price—that is, instead of $1.40 per gallon, the price is $1.80 per gallon. This above-equilibrium price is illustrated by the dashed horizontal line at the price of $1.80 in Figure 3. At this higher price, the quantity demanded drops from 600 to 500. This decline in quantity reflects how consumers react to the higher price by finding ways to use less gasoline.
Moreover, at this higher price of $1.80, the quantity of gasoline supplied rises from the 600 to 680, as the higher price makes it more profitable for gasoline producers to expand their output. Now, consider how quantity demanded and quantity supplied are related at this above-equilibrium price. Quantity demanded has fallen to 500 gallons, while quantity supplied has risen to 680 gallons. In fact, at any above-equilibrium price, the quantity supplied exceeds the quantity demanded.
Getting a job helps you improve both you learn new skills and improve any ones you already have
The borrower pays the proper amount due to the seller Cash 3270
<h3>Briefing:-</h3>
1. Interest income of $3000 X (0.18) = 540
2. $540 over six or twelve months equals 270.
3. Journal Entry 3,000 Notes Receivable Interest Revenue 270 Cash 3270
<h3>Interest income is it income?</h3>
Interest income is the profit made from lending money to other organizations. The phrase is typically used in the income statement of the company to describe the interest received on cash held in savings accounts, certificates of deposits, or other investments.
<h3>What do journal entries entail?</h3>
A firm keeps a journal, which is a succinct record of all transactions; journal entries describe how transactions influence accounts and balances.
The information in journal entries serves as the foundation for all financial reporting, and there are several versions to suit different corporate requirements.
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