1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MrRissso [65]
3 years ago
5

Which of the following is generally NOT true and an advantage of going public? a. Facilitates stockholder diversification. b. Ma

kes it easier to obtain new equity capital. c. Makes it easier for owner-managers to engage in profitable self-dealings. d. Establishes a market value for the firm. e. Increases the liquidity of the firm's stock.
Business
1 answer:
mrs_skeptik [129]3 years ago
7 0

Answer:

c.

Explanation:

Based on the answer choices provided it can be said that the option that is not true and an advantage would be that going public Makes it easier for owner-managers to engage in profitable self-dealings. Self dealings involves a deal in which the trustee/corporate official acts more in their own self interest as opposed to the interest of the beneficiary. This would be extremely difficult and not an advantage if the company decides to go public due to them being watched and scrutinized by the public eye. Therefore an action like this would end up badly hurting the company.

You might be interested in
Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: The bank owes Sam $100 per y
kodGreya [7K]

Answer:

X=97.24

Explanation:

PV = Present Value = X+2000 by the 16th years

PMT = Payments = $100

FV = Future Value = 2000 at the end of 16 years

n= number of years

Applying the equation of future value for annuity

FV = pmt* ​((1+r)ⁿ - 1   )/r

Inputting the values;

2000=100*((1+r)¹⁶-1)/r

Solving for r, gives r = 2.9%

Therefore using the formula for PV for annuity;

PV=PMT*(1-(1/1+r)/r)

X=100*(1-(1/1.029)/0.029

X=100*((1-0.9718)/0.029)

X=100*(0.0282/0.029)

X=97.24

4 0
3 years ago
On January​ 1, Year​ 1, Gallagher Corporation issued 400 comma 000 stock options for 400 comma 000 shares to a division manager.
masha68 [24]

Answer:

$1,000,000

Explanation:

Gallagher Corporation

Stock option × Option estimated fair value /Numbers of years

Stock option $400,000

Option estimated fair value $10

Numbers of years 4

Hence:

($400,000 × $10) / 4 years

=$4,000,000/4years

= $1,000,000

Therefore pretax compensation expense for year 1 will be $1,000,000

4 0
3 years ago
Benefits of setting objectives for a company
In-s [12.5K]

Answer:

Help them evaluate the business' growth

Explanation:

When they set objectives, they can look at it later on and check if they had reached their goal. So they can see how far they've reached as a business.

8 0
2 years ago
Where does jacob sartorius live now like his adress not state
sesenic [268]
LA califora 5421 beach street 2357 LA city
3 0
3 years ago
Read 2 more answers
Lego is considering an investment in Disney corporation. The risk free rate is 5% and the Beta for Disney is 1.2. Lego requires
disa [49]

Answer:

17%

Explanation:

This can be calculated using the Capital Asset Pricing Model which is given as under:

Required Return = Rf + Beta factor * (Market Risk Premium)

By putting the values, we have:

Required Return = 5% + 1.2 * 10% = 17%

Disney need to earn 17% return on investment to trigger a Lego investment.

5 0
2 years ago
Read 2 more answers
Other questions:
  • The Lady Eagles won 70% of their 30 basketball games this season How many games did they win?
    7·2 answers
  • Q-mart wants to know what safety stock should be maintained for its jumbo flyer if j. flyer's daily demand is normally distribut
    9·1 answer
  • An active worker receives $500 every two weeks. This kind of monetary reward for work is called ______.
    15·2 answers
  • Having decided what secondary sources you will use, you now need to decide whether you elect to use any primary sources for obta
    15·1 answer
  • Randall is single and has total income from all sources (taxable and nontaxable) of $83,000. His taxable income is $62,000. Rand
    15·1 answer
  • Assume that you purchased a $1,000 perpetual bond (coupon payment is $50) and the interest rate on that bond declined from 5 per
    14·1 answer
  • In an effort to raise more tax revenue from the upper class, the government decides to impose a new tax on luxury goods like yac
    13·1 answer
  • "In the recent years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. An article in the W
    11·1 answer
  • Which of the following do you NOT need to open a checking account?
    10·1 answer
  • Inventories held for sale in the normal course of business are classified in the balance sheet as?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!