If the financial markets are efficient then: stock prices should remain constant. stock prices should increase or decrease slowl
1 answer:
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Answer:
D) Growth in earnings per share averaging 15% or better annually for the next five years
Explanation:
First of all, objectives must be well defined and measurable. That is why increasing profitability is a good idea but not a very good strategic objective, since a 0.00001% growth in profits will still comply with it. The same applies with growing market share.
Improving product quality will help improve total sales but it is not a financial objective.
The only financial objective that is precise and measurable is option D, which sets the goal of increasing earnings per share at least 15% every year.
Answer:
FV $4,594,590
Explanation:
The annuity which produce funds will start on the seventh year thereofre there will be 4 annual deposits at the beginning of each year.
We solve for the future value of an annuity-due of 4 year at 10% interest rate:
C 900,000.00
time 4
rate 0.1
FV $4,594,590
This is the amount accumualted at the end of the tenth year