Answer:
1- a. A stock's intrinsic value is based on true investor return.
2- a. Most investors prefer companies that can rise prices beyond reasonable levels.
b. Successful companies can avoid raising external funds in the financial markets.
Explanation:
Intrinsic value of a company's stock is the real value of stock which is based on systematic factors affecting the company. The factors affecting the intrinsic value of company are usually internal factors. The performance of company management, employee satisfaction and its operational efficiencies are the factor which drive intrinsic value of a company.
Answer:
Ms. Z should invest in the State A.
Explanation:
Coupons from State A = (1 - 0.33)*0.05*75000
= 2512.5
Coupons from State R = (1 - 0.33 - 0.085)*.054*75000
= 2369.25
Therefore, Ms. Z should invest in the State A .
Answer:
Companies will move overseas to escape unions and hire cheaper labor.
Answer:
$75
Explanation:
Let, the payment made towards US Speedy credit card be 'U'
Therefore,
According to the question:
Payment made towards Express credit card, E = 3U
Total for the two cards = U + E
= U + 3U
= 4U
also,
Payment made towards passport credit card = 15% of 4U
= 0.15 × 4U
= 0.6U
Given: Total payment made = $575
Therefore,
E + U + 0.6 U = $575
or
3U + U + 0.6U = $575
or
4.6U = $575
or
U = $125
Hence,
Payment made towards passport credit card = 0.6U
= 0.6 × $125
= $75
Answer: $21,000
Explanation:
Financing activities refer to those that a company engages in, in relation to capital needed to run the affairs of the business which means it included Equity and Debt.
Financing Activities: Interest paid, dividends paid, money borrowed from bank, stock repurchase
Net cash flows from financing = Money borrowed from bank - Interest paid - dividends paid - Stock repurchase
= 50,000 - 6,000 - 8,000 - 15,000
= $21,000
