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Olegator [25]
4 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]4 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.

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Listed below are various transactions that a company incurred during the current year. select the impact on total stockholders'
adelina 88 [10]

Answer:

1. No par common stock is issued.

  • I) INCREASE STOCKHOLDERS' EQUITY SINCE COMMON STOCK ACCOUNT WILL INCREASE.

2. Treasury stock is sold at cost for cash (assume the cost method).

  • I)  INCREASE STOCKHOLDERS' EQUITY SINCE TREASURY STOCK IS A CONTRA EQUITY ACCOUNT THAT REDUCES TOTAL EQUITY, AND SINCE THE STOCKS WERE HOLD, EQUITY WILL INCREASE.

3. Treasury shares of preferred stock are purchased (assume the cost method).

  • D)  DECREASE STOCKHOLDERS' EQUITY SINCE TREASURY STOCK IS A CONTRA EQUITY ACCOUNT THAT REDUCES TOTAL EQUITY.

4. A payment date occurs for a cash dividend.

  • NE) NO EFFECT ON EQUITY, SINCE EQUITY HAD ALREADY DECREASED ON THE DAY THAT THE DIVIDENDS WERE DECLARED.
4 0
3 years ago
Which reason for trade barriers is being used when the us refuses to trade with another country because they use child labor to
Kruka [31]

The reason why trade barriers is being used when the us refuses to trade with another country is: Upholding standards.

<h3>What is upholding standard?</h3>

Upholding standard is the process were a country tend to follow and maintain their set standard without deviating from it.

United states refuse to trade with others country because  other country were using children as a laborer to produce goods and United state is against it leading to what is called trade barrier.

Inconclusion the reason why trade barriers is being used when the us refuses to trade with another country is: Upholding standards.

Learn more about upholding standard here:brainly.com/question/6868717

4 0
2 years ago
name some differences between the requirements and responsibilities between volunteer,intern, and paid jobs
DIA [1.3K]

Answer:

The major difference between job shadowing and an internship is that you perform more duties as an intern than as a job shadow participant. Interns are hired for temporary positions, and they can be paid or unpaid. When you have. a job you are bing paid and normally have more responsibilities.

8 0
3 years ago
Sandra views herself as a tough but fair supervisor. She gives explicit instructions to her subordinates about how tasks should
Luden [163]

Answer:Telling style leadership

Explanation: According to Hersey and Blanchard’s situational model of leadership, The telling style is an authoritarian type of leadership ususally directed or used with low- maturity followers where the leader gives explicit directions and instructions on how tasks should be performed and orders are not subject to interpretation

This type of leadership usually occurs when the leader has an expertise in the area which he or she specializes and so gives clear, precise quick and controlled instructions for efficient  implementation.

Here, Sandra uses the Telling style leadership to accomplish tasks and performances.

4 0
3 years ago
Read 2 more answers
A wire having a mass per unit length of 0.440 g/cm carries a 1.50-A current horizontally to the south. (a) What is the direction
coldgirl [10]

Answer:

B = 0.287  Tesla

According to thumb rule the direction of magnet is to the east.

Explanation:

F = BiL sin∅

note that F = mg

B = magnetic field

i = current

therefore,

mg = BiLsin∅

Make B subject of the formula

B = mg/iLsin∅

m/L = mass per length of the wire and it is given in gram per centimeter . It should be converted to kg per meter.

m/L = 0.440 g/cm

convert to kg/m = 0.440 × 0.001 kg × 100 m = 0.044  kg/m

B = 9.8 × 0.044 / sin 90 × 1.50 × 1

B = 0.4312/ 1.50

B = 0.28746666666

B = 0.287  Tesla

According to thumb rule the direction of magnet is to the east.

4 0
3 years ago
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