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kupik [55]
3 years ago
14

The objective of maximizing value for the shareholders provides an important theme in corporate finance. This objective is not w

ithout criticism. Which of the following is NOT a criticism. Select one: a. The objective is blind to social and ethical costs associated with value maximization. b. The objective does not well account for the fact that managers are naturally inclined to act in their own best interests, which are not always in line with that shareholders. c. It assumes that accrual based profits are superior to cash flows. d. It assumes some level of market efficiency.
Business
1 answer:
Illusion [34]3 years ago
4 0

Answer:

D

Explanation:

Agency conflicts arises  when the objectives of managers isn't aligned with that of shareholders.

Due to the objective of maximising value for shareholders, managers might be induced to engage in aggressive accounting practices in order to present a higher profits than might actually exist. This practice is unethical. This places more emphasis on profits than cash flows.

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The government banned running of an industry near a famous monument Taj Mahal, but ABC limited does not go by order of the court
notka56 [123]

Answer:

No

Explanation:

Taj Mahal is one of the greatest monument in the world. It is very beautiful. It is located in India. It is made up of white marble. Many people from all parts of the world come to visit Taj Mahal.

But recently the color of the marble changes its color to light yellow due to pollution. The companies near by are emitting harmful gases to the atmosphere for which the color of the white marble changed its color and became light yellowish brown.

In the context, company ABC Limited still operating near the Taj Mahal is not fulfilling its responsibility as it is destroying the beauty and existence of the world famous Taj Mahal.

3 0
3 years ago
what is the current prices of a $1,000 par bond maturing in 12 years with a coupon rate of 14%, paid semiannually, that has a yt
Leviafan [203]

The current prices of a $1,000 par bond maturing in 12 years with a coupon rate of 14%, paid semiannually, that has a ytm of 13% is $ 130000 .

The entire return anticipated on a bond if it is kept to maturity is known as yield to maturity (YTM). Although it is expressed as an annual rate, yield to maturity is regarded as a long-term bond yield. It is, therefore, the internal rate of return (IRR) of a bond investment assuming the investor retains the bond to maturity, with all scheduled payments made and reinvested at the same pace.

Yield to maturity is comparable to current yield, which calculates how much money would be made by purchasing and keeping a bond for a year by dividing annual cash inflows from that bond by its market price. The value of a coupon paying bond is calculated by discounting the future payments (coupon and principal) by an appropriate discount rate.

The bond characteristics are summarized below:

Par Value =     $1,000

Yield        =      13% annual (13/2 =6.5% semi-annual)

Coupon   =      12% with semi-annual payment of $60

Maturity   =      1 year

The value of the bond is calculated as follows:

$1000 of 13%  = (13/1000)* 100 =130

Calculate PMT = FV*Coupon Rate

Current price = $1000*130

Price = $ 130000

Learn more about yield to maturity visit: brainly.com/question/28033398

#SPJ4

8 0
1 year ago
Routine purchases may only require ______ information search, whereas one-time high expense purchases require more ______ inform
natta225 [31]

Routine purchases may only require internal information search, whereas one-time high expense purchases require more external information search time.

<h3>What is Routine purchases?</h3>

The  routine purchases are one that people make to seek for  little decision-making, however this purchases are made with “programmed behavior.

Hence , Routine purchases may only require internal information search, whereas one-time high expense purchases require more external information search time.

Find out more on Routine purchases at brainly.com/question/26242633

#SPJ1

7 0
2 years ago
The Assembly Department of​ ByteSize, Inc., manufacturer of​ computers, incurred $ 290 comma 000 in direct material costs and $
andreev551 [17]

Answer:

The cost per equivalent unit of production​ (EUP) for conversion costs is​ $116.67

Explanation:

The cost per equivalent unit of production​ (EUP) for conversion costs is​ = 70000/600= $116.67

3 0
3 years ago
The distribution department at Golden Grains Wheat Company has decided to adopt the FIFO (first in, first out) method of invento
Akimi4 [234]

Answer:

Option B "functional strategy " is the correct option.

Explanation:

  • A functional approach or strategy is necessarily connected to operations and maintenance-level decision-making, also recognized as tactical changes.
  • Those same tactical decisions were mostly applied to different operational departments such as business, research as well as development, human resources, warehousing, logistic support, amongst others.

And therefore this strategy demonstrates best the specific situation.

6 0
3 years ago
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