Over the years, Janjigian Corporation's stockholders have provided $18,000 of capital, part when they purchased new issues of st
ock and part when they allowed management to retain some of the firm's earnings. The firm now has 400 shares of common stock outstanding, and it sells at a price of $50.00 per share. How much value has Janjigian's management added to stockholder wealth over the years, i.e., what is Janjigian's MVA?
Angelo Inc’s current balance sheet shows total common equity of $525,000. It has 99,000 shares of stock outstanding, and they sell at a price of $26.50 per share. By how much do the firm's market and book values per share differ?
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
The flexible price policy is a bargaining system between the buyer and seller to trade together at an agreed price.
The FOB seller factory price policy means where the ownership of the goods transferred to buyer, Robinson's act is only to prevent price discrimenation in the retail industry from the producers, a skimming price policy makes use of dual prices whithin a time interval, a status quo pricing objective is to maintain homogeneous price in the market among the sellers.