Answer:
Please see below.
Explanation:
a.
• Reasonable compensation package. Every stockholders would usually want a good return on their investments. One of the techniques that can be used by them is to offer good and reasonable compensation packages to the company's highly performing executives and managers. The aim is to spur them to act in the best interest of the stockholders and not themselves. This will also translate to better performance of the company.
• Firing of managers who don't perform well. If a company's stock is not performing well(does not appreciate), such would usually be tied to its board and managers. Stockholders are the owners of a company because their funds are being used to trade hence can threaten to replace or actually replace any manager who is not performing well. By so doing, the managers that are retained will be motivated to perform really well in order to retain their jobs hence translate to better company performance.
• Threat of hostile take over. Stockholders could also threaten a company's board of being taken over by a proven and well accomplished company , if their stock price does not improve overtime. When the managers or board realize that their job is being threatened, they will be motivated to act fast by ensuring that the company's stocks yield adequate return in the long run.
b.
What should be paramount to managers is how to ensure that their company's intrinsic stocks value(an estimate of the true value of a stock, that is premised on well calculated risk) are well maximized. The stockholders should also be carried along while this process is on going. By maximizing their stock's intrinsic value, such would bring about high value to the stocks, while as time goes on, the actual stock price will be much closer to the intrinsic value of the stocks.
Answer:
$1,080,000
Explanation:
Calculation to determine what Razor Inc.'s total contribution margin for next year will be:
First step is to calculate the Total cost
Selling price per unit for next year $160
Less Direct Materials ($22)
(110%*20)
Less Direct Labor ($15)
Less Variable Manufacturing Overhead ($12)
Less Variable Selling ($3)
Total $108
Now let calculate the Next year contribution margin
Next year contribution margin=$108*10,000 units
Next year contribution margin= $1,080,000
Therefore Razor Inc.'s total contribution margin for next year will be:$1,080,000
Dividends to be paid for cumulative preferred stock
current year 1,500×40×0.07=4,200
dividends in arrears to preferred stockholders 4200
Total dividends to be paid to preferred stockholders=4200+4200=8400
Dividends that Common stockholders received
10000-8400=1600 ...answer
Answer:
$300,000
Explanation:
From the above passage, the information given is that the land was valued at $300,000 which is the fair market value price as at when Tobin's father died. What this means is that the amount of $300,000 will be Tobi's basis in the land although the land was purchased by his father at the cost of $19,000 in 1970.
Since the federal estate tax return was filed, and the value of the land was $300,000, hence his basis(Tobin) in the land would be $300,000
.70 since the top 8 firms produce 70% of the output.