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
Land Transactions on the Statement of Cash Flows Alpha Corporation purchased land for $211,000. Later in the year, the company s
horsena [70]

Answer:

<u>investing activities:</u>

acquisition of land   (211,000)

sale of land              (101,000)

<u>Operating Activities:</u>

gain on sale: NO EFFECT if direct method is used

                adjusting the net income if the indirect method is used.

Explanation:

The cash disbursmenets and cash proceeds fro mthe purhcase and sale of land respectevely will appear as investing activities.

The gain on the sale will adjust the net incoem if the company used indirect method to determinatethe cash from operating activities.

As is a non-monetary term It will be removed.

If the company used the direct method there will be no mention to the gain on sale.

3 0
3 years ago
LA Diversified Inc. recently paid its annual dividend of $3. Dividends have consistently grown at a rate of 3.8%. The stock has
RSB [31]

Answer:

$51.22

Explanation:

For computing the intrinsic value, first we have to determine the current year dividend and expected rate of return which is shown below:

The computation of the next year dividend is shown below:

= $3 + $3 × 3.8%

= $3 + 0.114

= $3.114

And, the expected rate of return would be

= Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 2.4% + 0.88 × (10.9% - 2.4%)

= 2.4% + 0.88 × 8.5%

= 2.4% + 7.48%

= 9.88%

Now the intrinsic value would be

= Next year dividend ÷ (Required rate of return - growth rate)

= $3.114 ÷ (9.88% - 3.8%)

= $3.114 ÷ 6.08%

= $51.22

3 0
3 years ago
Helmert Federal, a financial institution, acquires its funds primarily from the deposits of its customers, and then uses these f
Viefleur [7K]

Answer:

Savings and loan association

Explanation:

Since, Helmert Federal, acquires its funds primarily from the deposits of its customers, and then uses these funds to make mortgage loans for individuals interested in purchasing real estate properties.Therefore we can say that

Helmert Federal is a Savings and loan association

8 0
3 years ago
A homeseller wants to net $75,000. The commission is 9%, the loan payoff is $450,000, and closing costs are $36,000. What must t
gregori [183]

Answer:

The home must sell for $616,500 to be able to settle all costs

Explanation:

The net to the formula can be used to ascertain the price of the property , the formula is given below:

Net amount=Sales price*(100%-commission rate)

The net to the seller in this case is the amount that seller would receive and be able to settle mortgage and closing costs and still be left with $75000

Net amount =$75000+$450000+$36000

                     =$561000

commission rate is 9%

$561000=sales price*(100-9%)

$561000=sales price*91%

sales price =$561000/91%

                  =616483.52

But to the nearest $100 is $616500

6 0
3 years ago
In your own words.<br><br> Why is it important to the business to motivate employees?..
Alexeev081 [22]

This is mainly opinionated, and since I'm young I may be wrong.

I say it's good to motivate them because then they will do a better job at their task and will make you seem like a good boss/person, especially if it's a decent pay that will keep them being able to live. With the motivation, they might even remember more things (Such as: If you work at a gas station, you remember to upsell people when a deal is going on, whereas unmotivated people forget or just don't want to do it and be lazy). It's the same effect of giving a kid a piece of candy for being good, doing chores, or getting a harder question right.

6 0
3 years ago
Other questions:
  • On October 5, Cullumber Company buys merchandise on account from Marin Company. The selling price of the goods is $6,650, and th
    15·1 answer
  • The money being made in a company.<br> A)Obsolesce <br> B)Solvency <br> C)Revenue <br> D)Debt
    11·1 answer
  • On January 31, 2016, Charlie Company paid employees $6,500 for January wages earned. Prepare the general journal entry (without
    11·1 answer
  • During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost
    15·1 answer
  • Describe at least four ways you can take money out of a checking account
    11·2 answers
  • The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $470,000. Included in that coun
    12·1 answer
  • Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the account pa
    14·1 answer
  • Apple is known for its innovation. It conducts in-depth marketing research to determine what customers want. Its electronic devi
    15·1 answer
  • The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its ass
    9·1 answer
  • Pls i need this fast!! 30 pts!!
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!