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3 years ago

Which of the following describe the reason(s) why maximization of intrinsic stock value benefits society?

Business

1 answer:

Dafna1 [17]3 years ago

7 0

Answer:

B. Workers prefer companies that minimize operating costs.

C. The owners of stock are society.

D. Successful companies attract more talent.

Explanation:

The intrinsic stock value does not need to reflect the market value of the company stock. However, the intrinsic stock reflects the company's lucrative aspect, something more intuitive that describes the company's operating. Therefore, a high intrinsic stock value reflects a company with great reputation.

A company with high intrinsic stock will surely attract more talent, as the talent pool is motivated by working in a reputable, efficient company. This kind of company is surely cost-effective in terms of operation too.

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The Peoria Supply Company sells for $30 one product that it purchases for $20. Budgeted sales in total dollars for next year are

Alborosie

Answer:

The Peoria Supply Company

a. Schedule of Estimated Cash Collections:

Cash collections: July

50% sales month $25,500

less 2% cash discount (510)

40% following month 16,800

8% second month 2,400

Total collections $44,190

b. A Schedule of Estimated July Cash Payments for Purchases

June July

Sales $42,000 $51,000

Ending inventory 18,000* 27,000

Beginning inventory 21,000 18,000*

Estimated Purchases 39,000 60,000

Payment for purchases:

50% purchase month $30,000

50% following month 19,500

Total payment for purchases $49,500

c. Selling and administrative expenses

Non-Cash expenses:

Depreciation expense $1,667

Cash disbursements:

Other fixed costs 5,333

Variable costs 6,375

Total costs $13,375

Explanation:

a) Data and Calculations:

Selling price per product = $30

Purchase cost per product = $20

Total sales dollars for next year = $720,000

Month Sales Revenue

May $30,000

June 42,000

July 51,000

August 54,000

July 1:

Cash balance = $20,000

Merchandise inventory $18,000

Accounts receivable (sales) 23,000

Accounts payable (purchases) 12,000

Ending inventory = $27,000 ($54,000 * 50%)

Ending inventory = 50% of next month's budgeted sales

Selling and administrative expenses (excluding bad debts) for the year = $180,000

Fixed costs = $90,000

Depreciation 20,000

Cash fixed costs = $70,000

Monthly fixed costs = $5,833

Variable costs = $90,000

Variable costs per sales dollars = $90,000/$720,000 = $0.125

Cash variable cost for July $0.125 * $51,000 = $6,375

a. Schedule of Estimated Cash Collections:

Cash collections: May June July August

$30,000 $42,000 $51,000 $54,000

50% sales month 15,000 21,000 25,500 27,000

less 2% cash discount (300) (420) (510) (540)

40% following month 16,800 20,400

8% second month 2,400 3,360

2% Uncollectible

8 0

3 years ago

What will be the end result for the taxpayer who filed his federal income tax

Hunter-Best [27]

Answer: he will owe $135

Explanation:

7 0

3 years ago

Read 2 more answers

To verify the quality and integrity of completed visuals ask yourself all of the following questions, except

kupik [55]

In order to verify the quality and integrity of completes visuals, you should NOT ask yourself the question “Is the visual doing the job?”

One needs to ensure visual and textual flow in order to have successful integration with text involves for decisions.

7 0

3 years ago

Read 2 more answers

Everything else held constant, an increase in currency holdings will cause A. the money supply to rise. B. checkable deposits t

liraira [26]

Answer:

C. the money supply to fall.

Explanation:

According to my research on economics, I can say that based on the information provided within the question an increase in currency holdings will cause the money supply to fall. This is because if people begin to hold this causes the cash flow to decrease and money supply decreases because of the low cash flow.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0

3 years ago

Which of the following statements are true? Check all that apply. In this labor market, a minimum wage of $9.00 is binding. In t

soldier1979 [14.2K]

Answer:

1. In this labor market, a minimum wage of $9.00 is binding : FALSE

2. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium : TRUE

3. If the minimum wage is set at $12.50, the market will not reach equilibrium : TRUE

4. Binding minimum wages cause frictional unemployment : FALSE

Explanation:

Question has been attached here

Unemployment is the term used to define those who are willing and are actively seeking work but cannot find any. A minimum wage is a price control, in the form of a price floor imposed by government legislation in order to protect laborers from low wages. Paying anything below the minimum wage is against the law.

1. In this labor market, a minimum wage of $9.00 is binding : FALSE

A minimum wage is binding only if it is set above the equilibrium price. In this scenario, the equilibrium price is at $12. Hence, $9 is not binding since a shortage of labor would gradually raise the price to the equilibrium.

2. In the absence of price controls, a shortage puts upward pressure on wages until they rise to the equilibrium : TRUE

When there is a shortage in the market, it means that the quantity supplied is higher than the quantity demanded. With any particular commodity such as bread or rice, a shortage creates a rise in price. Just as that, a shortage of workers creates an upward pressure on the price (wage). Since there are no price ceilings, market will reach equilibrium.

3. If the minimum wage is set at $12.50, the market will not reach equilibrium : TRUE

As shown in the diagram, the market equilibrium is $12. If the minimum wage was $12.50, there would be a surplus of labor (quantity supplied is higher than quantity demanded). Naturally, this may cause a downward pressure on wages until it reaches $12. However, when a minimum wage is imposed at $12.50, it cannot fall below that level. Thus, the market will not reach the equilibrium.

4. Binding minimum wages cause frictional unemployment : FALSE

Frictional unemployment is a type of unemployment that occurs when workers are temporarily unemployed while switching between jobs. It is normal and occurs even in the healthiest of economies. A binding minimum wage is more likely to cause structural unemployment. This occurs when there is a mismatch between the skills of the labor force and the skills expected to be possessed by employers to do a particular job. Hence, even if jobs are available, the laborers are not suited to do them and thus are unemployed.

6 0

3 years ago