Answer:
b.environmental regulations have gotten in the way of economic
Answer:
Explanation:
Okay then.
Let's break it down.
We have $4,400,000 in Total Stockholder Equity.
Common Stock account of $1,200,000 of $10 par value common stock.
That means that there are,
= 1,200,000/10
= 120,000 Common Stock Shares outstanding.
Out of that total stockholders' equity of $4,400,000 we need to find out how much is for Common Stock Holders alone.
That means we need to subtract that of Preferred Stock.
= 4,400,000 - 200,000
= $4,200,000 is the amount of Stockholder Equity that is for Common Stock Holders.
We can then divide it by the total number of Common Stock to find out the book value per share.
= 4,200,000/120,000
= $36.6666667
= $36.67
$36.67 is the book value per share of Common Stock as of end of the FY 2018.
Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
Thanks!
Answer:
Target marketing
Explanation:
Target marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments consisting of the customers whose needs and desires most closely match your product or service offerings. It can be the key to attracting new business, increasing sales, and making your business a success.
Farrugia's Mens Clothes has implemented target marketing technique b focusing on men with specific demographic factors.