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artcher [175]
3 years ago
5

What are three techniques stockholders can use to motivate managers to maximize their stock’s long-run price? Should managers fo

cus directly on the stock’s actual market price or its intrinsic value, or are both important? Explain.
Business
1 answer:
Romashka [77]3 years ago
6 0

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.

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I’ll mark the best one with 20 points !
bonufazy [111]

Answer: rotate the bottom to the right, top to bottom and right to top

Explanation:

5 0
2 years ago
On August 31, Planar Corp. exchanged 100,000 shares of its $40 par value common stock for all of the net assets of Sistrock Co.
vlada-n [284]

Answer:

$7,200,000

Explanation:

Calculation to determine At what amount should Planar record the acquisition of Sistrock's net assets

Using this formula

Acquisition of Sistrock's net assets =(Shares of common stock issued ×Common stock fair value per share

Let plug in the formula

Acquisition of Sistrock's net assets=100,000*$72

Acquisition of Sistrock's net assets=$7,200,000

Therefore the amount that Planar should record the acquisition of Sistrock's net assets is $7,200,000

3 0
3 years ago
Money that you owe is known as debt
Andrews [41]

Answer:

true

Explanation:

3 0
2 years ago
Currency located at the company $ 600
Drupady [299]

Answer:

$12,900

Explanation:

Amount of cash reported in the balance sheet refers to the cash balance in the bank and other short term investments that may be liquidated in 3 months or less.

It is a current asset in the balance sheet.

Amount of cash on balance sheet = $1,500 + $6,700 + $200 + $100 + $4,400

= $12,900

5 0
3 years ago
janie curtis borrowed $22,000 from a bank at an interest rate of 9% compounded monthly. this loan is to be repaid in 36 equal mo
Margaret [11]

Answer:

Explanation:

Given:

  • PV = $22,000
  • r = 9% /12 = 0.09/12 compounded monthly
  • n = 36

we need to find the payment per month:

= \frac{rPV}{1 - (1+r)^{-n} }

= \frac{0.0075*22000}{1 - (1+0.0075)^{-36} }  

= $ 699,59

Hence, after 20th payment, she already paid:

$699,59 * 20 = $13,991.8

After we find out the Future value:

FV = PV (1+i)^{n}

=$22,000((1+0.0075) ^{36}

= $28,790.20  

At the end, the total amount she must pay at that time is:

FV - The amount she has already paid

= $28,790.20   - $13,991.8

=$14,794.4

Hope it will find you well.

8 0
3 years ago
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