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Nutka1998 [239]
3 years ago
9

Goals of the Firm. Fill in the blanks in the following passage by choosing the most appropriate term from the following list (so

me of the terms may be used more than once or not used at all): expected return, financial assets, lower, market value, higher, opportunity cost of capital, real assets, dividend, shareholders.
Shareholders want managers to maximize the ____ of their investments. The firm faces a trade-off. Either it can invest its cash in ____ or it can give the cash back to ____ in the form of a ____ and they can invest it in ____ . Shareholders want the company to invest in ____ only if the ____ is ____ than they could earn for themselves. The return that shareholders could earn for themselves is therefore the ____ for the firm.
Business
1 answer:
Trava [24]3 years ago
3 0

Answer:

Market value; real assets; shareholders; dividend; financial assets; real assets; expected return; higher; opportunity cost of capital.

Explanation:

Shareholders want managers to maximize the market value of their investments. The firm faces a trade-off. Either it can invest its cash in real assets or it can give the cash back to shareholders in the form of a dividend and they can invest it in financial assets. Shareholders want the company to invest in real assets only if the expected return is higher than they could earn for themselves. The return that shareholders could earn for themselves is therefore the opportunity cost of capital for the firm.

A shareholder can be defined as an individual or organization who has a stock in a particular company through the purchase of such stocks.

Generally, all shareholders are interested in making profits and increasing the market value of their investments.

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KylaKyla is buying clothesclothes. She can choose between blue jeansblue jeans​, khaki pantskhaki pants​, and black jeansblack j
cupoosta [38]

Answer:

B. The khaki pants

Explanation:

Opportunity cost is the benefits forfeited as a result of choosing one item or activity over the other.  It the value of the next best alternative of choice made.

Opportunity costs arise because people have to make choices every day. Choosing an item over others implies sacrificing the benefits of the others. The value or cost of the sacrificed item represents the opportunity cost.

Khaki pants are the opportunity cost. Kyla is comfortable with either blue jeans or khaki pants. He does not like black jeans. His alternatives are khaki pants or Blue jeans. Choosing blue jeans implies forfeiting khaki pants. The khaki pants are the best alternative that was missed.

7 0
3 years ago
The purpose of preparing a direct materials budget is to ________. multiple choice 1 allocate the cost of raw materials to produ
Eduardwww [97]

Answer:

1. estimate the quantity of raw materials to be purchased.

2. ending raw materials inventory for the last period.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

1. The purpose of preparing a direct materials budget is to estimate the quantity of raw materials to be purchased. This includes the raw materials that would be used for the manufacturing of finished goods.

2. In a direct materials budget, the desired ending raw materials inventory for the year is equal to the ending raw materials inventory for the last period.

3 0
2 years ago
Which one of the following is a possible sign of poor listening?
Sedbober [7]
I believe the answer would be D
8 0
3 years ago
Bridgeport Inc. wishes to accumulate $1,092,000 by December 31, 2030, to retire bonds outstanding. The company deposits $168,000
Svetlanka [38]

Answer: $9,479

Explanation:

The number of periods = 10 years * 4 quarters = 40 periods

Interest per quarter = 10%/4 = 2.5%

$168,000 has been deposited. The value of this cash after 10 years is;

= 168,000 ( 1 + 2.5%) ^ 40

= $451,090.72

Out of $1,090,000, the amount remaining is;

= $1,090,000 - 451,090.72

= $638,909.28‬

They need to deposit an annuity per quarter to get to $638,909.28‬.

Future Value of Annuity = Annuity * ([1 + I]^N - 1 )/I

638,909.28‬ = Annuity * [(1+0.025)^40 - 1] /0.025

638,909.28 = Annuity * 67.40255

Annuity = 638,909.28/67.40255

= $9,479

5 0
3 years ago
One advantage of preferred stock over common stock is that preferred stockholders
OleMash [197]
I believe the answer is A
6 0
3 years ago
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