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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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Why are public works projects like the Honolulu Rail project nearly impossible to stop once they have been approved, even if lat
bekas [8.4K]

There are several reasons why this type of projects are nearly impossible to stop once they have been approved, even when costs skyrocket.

First, it is difficult to stop these projects because, when these start, a lot of moeny is put into them. When the cost begins to skyrocket, people believe that to stop the project would mean wasting all the money already invested. This prevents people from stopping the projects.

Another reason is the fact that many different companies, investors and institutions are involved in these projects. Coordination is difficult, and pmany parties have a vested interest in the completion of such works. This makes it difficult for the different parties to agree on the right moment to stop.

3 0
3 years ago
Wes Motors has total assets of $98,300, net working capital of $11,300, owners' equity of $41,600, and long-term debt of $38,600
Molodets [167]

Answer:

Current Assets = $29,400

Explanation:

Total Assets = Total Liabilities + Owner's Equity

$98,300 = (Long Term Debt + Current Liabilities ) + Owner's Equity

$98,300 = $38,600 + Current Liabilities + $41,600

Current Liabilities = $98,300 - $38,600 - $41,600  

Current Liabilities = $18,100

Net Working Capital = Current Assets - Current Liabilities

$11,300 =  Current Assets - $18,100

Current Assets = $11,300 +$18,100  

Current Assets = $29,400

6 0
3 years ago
The speed and ease by which an asset can be converted into cash is referred to as its risk. liquidity. diversity. safety.
balandron [24]
<span>The answer to the question stated above is liquidity.

The ease with which an asset can be converted quickly into cash with little or no loss of purchasing power is liquidity.

>>>Money is said to be perfectly liquid, whereas other assets have a lesser degree of liquidity.</span>
8 0
3 years ago
How does microfinance benefit an economy?​
JulsSmile [24]

Answer:

it enables people to use money wisely

Explanation:

this is because a specific amount of money will be provided for a specific reason

3 0
2 years ago
1. How do customers judge the quality of a supermarket? 2. Indicate how and why each of these factors is important to the succes
kirza4 [7]

Answer:

1. How do customers judge the quality of a supermarket?

They judge the quality of a supermarket depending on their values and most urgent needs.

Customers who value quality, and even luxury, will say that a good supermarket is one that offers high quality products.

Customers who value price, will prefer a low-cost supermarket.

2. Indicate how and why each of these factors is important to the successful operation of a supermarket:

a. Customer satisfaction - a very important factor because it determines how well the supermarket is serving its customers.

b. Forecasting - the supermarket needs to forecast all sorts of things, from, sales forecasts, to profit forescasts, to costs forecasts.

c. Capacity planning - the supermarket needs to know what it is actually able to do, and what projects it can embark on, for this, it needs to do a lot of capacity planning.

d. Location - Location is extremely important for a supermarket. It determines a large part of the customer demand because customers prefer supermarkets to be close to where they live.

e. Inventory management - Supermarkets need to manage inventories carefully, specially because a lot of the goods that a supermarket sells, are perishables.

f. Layout of the store - The Supermakert needs to be careful when determining the layout of the store. Customers want a layout that is easy to navigate, and where goods are placed according to a coherent classification.

g. Scheduling - The supermarket needs to establish a convenient schedule for its customer base.

What are some of the ways Wegmans uses technology to gain an edge over its competition?

Wegmans is characterized for its early adoption of ground-breaking technologies. For example, recently Wegmans developed a mobile application to assist blind shoppers.

6 0
2 years ago
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