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
Olegator [25]
3 years ago
14

g "1. How would each of the following events change the equilibrium financial market value of a company? (a)an increase in its c

ost of production; (b) an increase in its cost of financing; (c) an increase in the market’s discount rate; (d) an increase in its sales revenue; and (e) an increase in its projected future profits."
Business
1 answer:
Mekhanik [1.2K]3 years ago
3 0

Answer:

a. Decrease

b. Decrease

c. Decrease

d. Increase

e. Increase

Explanation:

a. When the company's cost of production increases, this reduces the amount of profits they make. A lower than expected profit margin is frowned upon in the Financial market therefore some people will sell their shares in the company which will have the effect of decreasing market value.

b. An increase in a firm's cost of financing signals an increase in the riskiness of a company. It also means that the company will be paying more on interest which will reduce profits. These 2 thing will drive some investors away thereby reducing the market value.

c. A firm's value can be found by discounting its projected sales and dividends amongst others with a certain discount rate. If a higher rate is used, the present value and hence the market value figure will be less.

d. When there is an increase in Sales revenue, it signals profitability for a company. Investors love profitable companies and will buy more of the company stock which will drive up the price.

e. Projected future profits can be used to calculate present value as well as serve as an indication of future profitability. Investors will buy more shares and drive up the market value.

You might be interested in
The Constitution sets forth specific powers that can be exercised by the national government and provides that the national gove
jasenka [17]

Answer:

All other powers are reserved by the states under the tenth amendment. So in the USA, national government according to the constitution has the specific powers that it can use to deliver best to the people. These powers are delegated to national government because they are elected by the people of USA and owe a duty of care to them by giving them powers to act in their best interest.

6 0
3 years ago
HELP ASAP NEED THIS
KonstantinChe [14]

Answer:

Shirly would be suitable for the following races; law, public safety and security.

Explanation:

the careers of law, public safety and security, are those that describe the characteristics that Shirly presented in his evaluation, since they reflect the qualities of justice, security and good physical condition to face risk situations, and that all of them They are aimed at the common good of the people around them.

7 0
3 years ago
Read 2 more answers
What percentage of each dollar of sales affected net income given Sales of $120,000; Cost of Goods Sold of $70,000; Operating Ex
Romashka [77]

Answer: 25%

Explanation:

3 0
2 years ago
Suppose that a monopoly computer chip maker increases production from 10 microchips to 11 microchips. If the market price declin
Sergeu [11.5K]

Answer:

$19

Explanation:

Marginal revenue is the change in revenue when production increases by one unit

Marginal revenue = change in total revenue / change in quantity produced

total revenue 1 = $30 x 10 = $300

Total revenue 2 = $29 x 11 = $319

change in total revenue = $319 - $3000 = $19

Change in quantity produced = 11 - 10 = 1

Marginal revenue = $19 / 1 = 19

5 0
3 years ago
In network economics, the value of a commercial software vendor's software products:
Natali [406]

Answer:

increases as more people use them.

Explanation:

Network economics refers to a business that uses network effect. It is also called Netromix. The value of a good is increased as the number of buyers increases.

The business will benefit from feedback received by customers that use their products.

For example online services like LinkedIn and Twitter benefit from this type of framework. The more users that use these software th more the business gains.

7 0
3 years ago
Other questions:
  • Ford, an american car company, purchased volvo, which is based in sweden. what is this an example of? an independent agency a fo
    14·1 answer
  • The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the w
    15·1 answer
  • Giving brainliest for CORRECT awnser.
    15·1 answer
  • Weber Company purchased a mining site for $1,750,000 on July 1. The company expects to mine ore for the next 10 years and antici
    11·1 answer
  • The​ risk-free rate is 3.4​% and you believe that the​ S&P 500's excess return will be 11.9​% over the next year. If you inv
    5·1 answer
  • You are going to deposit $21,000 today. You will earn an annual rate of 4.1 percent for 15 years, and then earn an annual rate o
    11·1 answer
  • Several years ago, Cayuga Capital acquired a $1 million insurance policy on the life of its chief executive officer, naming Cayu
    8·1 answer
  • A politician, surrounded by a crowd of people, comes under gunfire. The would-be assassin is using a fully automatic firearm. A
    7·1 answer
  • g __________ conversion is the least expensive and highest risk IS conversion strategy because the old system is cut off and the
    8·1 answer
  • Typical insurance plans that companies offer to their employees and sometimes pay a significant portion of the monthly costs are
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!