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
KATRIN_1 [288]
2 years ago
12

Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock

and allowed management to retain some of the firm's earnings. The firm now has 1,000,000 shares of common stock outstanding, and it sells at a price of $41.00 per share. How much value has O'Brien's management added to stockholder wealth over the years, i.e., what is O'Brien's MVA?
Business
1 answer:
ikadub [295]2 years ago
4 0

Answer:

$21,000,000

Explanation:

Data provided in the question

Capital provided = $20,000,000

Now the updated value of the common stock is

= 1,000,000 shares × $41

= $41,000,000

So, the valued added to the stockholder wealth is

= Updated value - capital provided

= $41,000,000 - $20,000,000

= $21,000,000

The difference of the amount is considered to be the value added

You might be interested in
Consider three different closed economies with the following national income statistics. Country A has taxes of $40 billion, tra
scoray [572]

Answer: option B

Explanation:

in A) budget deficit = G+Tr - T

= 30+20-40

= 10

In B) private saving , Y-C-T = 60

Y = C+G+I

So, C+G+I-C-T = 60

G-T = 60-40 = 20

Budget deficit= 20, HIGHEST

In C) Y = C+G+I+Tr - T

300 = 180+G+ 90 + 20-60

G = 70

So budget deficit= G-T

= 70-60

= 10

6 0
3 years ago
In the leadershio grid employees preferred which of the following styles?
Greeley [361]

Answer:

C. middle of the road management

Explanation:

Leadership grid refers to a situation when a leader put too much emphasize on one part of the operation while neglecting the others. In the end, this will reduce the overall's productivity.

Example of leadership Grid:

When managers force the employees to work overly long hours every day because they believe it will bring more profit for the company. But in the end, the employees felt a burn out and many of them eventually quit or  become too tired to be fully productive.

To handle leaderships grid, middle of the road management tend to be preferred.

The reason for this is that middle of the road management tend to implement balanced concern between the business and the people who work in it. This management will create a schedule that allow the employees to fulfill the needs in their personal life and career.  In the long run, this will create a positive environment in the workplace and improve the productivity as a whole.

3 0
3 years ago
Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2011, for $105,000 when the book value of Gates was $600,000
IceJOKER [234]

Answer:

a. $80,000

Explanation:

In this question we are only concerned about the net income reported by Dodge on its income statement.

First we need to calculate ownership % in 2012 = 15% + 25% = 40%

Net income of 2012 (Gates) = $ 200000

hence Dodge will report net income of 40% of 200000 = $80000

Hence the correct answer is A

Note: Dividends will not affect the investors net income but it would reduce the investment value of Gate reported by Dodge (as it is seen as a return on investment)

5 0
3 years ago
An antique dealer buying items and hoping to sell them for more than he or she paid for them is the very definition of​ a:
DiKsa [7]
<span>An antique dealer buying items and hoping to sell them for more than he or she paid for them is the very definition of​ a business. A business is economic system that includes commercial and industrial activities through production and sales or exchange of goods and services. 
</span><span>In every business there are investment and  customers . In this case the investment is buying antiques and the customers are people interested in antique works. </span>
3 0
3 years ago
Marketing by a service firm to effectively train and motivate its customer-contact employees and all the supporting service peop
ikadub [295]

Answer:

Internal

Explanation:

As the name implies, internal marketing is one in which a service firm trains employees in a product's company and its customers' contact to ensure maximum customer satisfaction. Internal marketing means that every member of staff is involved in marketing  and not just the marketing department of the firm.

Cheers.

7 0
3 years ago
Other questions:
  • Evert Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; th
    11·1 answer
  • If the demand increases by 100%, annual production will have to increase to jaw-breakers next year to meet the expected increase
    13·1 answer
  • A firm that responds to a regulatory rule in a way that permits technical compliance while allowing the firm to violate the spir
    6·1 answer
  • Why is good judgement important to making budgeting decisions
    14·2 answers
  • At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty program was expecte
    5·1 answer
  • Plano Co. 12/31/2021
    15·1 answer
  • 18) Fred purchased shares of stock In a fast-food corporatlon for $10,000. Marla ls a sole proprletor of a
    15·1 answer
  • Give the definition of ethics.​
    8·1 answer
  • Inez is compensated based on a plan that pays a base salary, with commission in addition. Inez receives $40,000/year salary (and
    10·1 answer
  • A merchandiser sold merchandise inventory on account. the journal entry to record a sales allowance in the books of the merchand
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!