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Yuki888 [10]
3 years ago
13

CalPERS, the California Public Employees Retirement System, manages over 240 billion dollars in assets. As an example of shared

activism, they review all short- and long-term performance figures for each of the firms in which they invest and then work to ensure shareholder rights by requesting the companies make changes in their governance structure.
a. True
b. False
Business
1 answer:
Sphinxa [80]3 years ago
5 0

Answer:

The correct option is true

Explanation:

Shared activism refers to the use of direct action in achieving a goal as in the case of people refusing to leave a house marked for demolition in order to protect the house from being demolished.

CalPERS as a pension fund manager coupled with being a major shareholder in many of the firms where it holds investment has just employed the strategy of direct intervention known as shared activism in order  that the value of its  portfolio is optimized.

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Investors who acquire preferred stock: Multiple select question. will receive more dividends than common stockholders. have pref
8_murik_8 [283]

Investors who acquire preferred stock Investors who acquire preferred stock.

A preferred stock is an hybrid of a stock and a bond. It is a stock in which the holders of the stock have no voting rights. Also, when dividends are being paid, preferred shareholders are paid before common shareholders. Creditors have preference over preferred shareholders.

Advantages of preferred stock

  1. Preferred stock investors usually receive a higher dividend compared with common shareholders.
  2. In the event of the liquidation of the business, preferred stock holders have a higher claim on an asset compared to common shareholders.

A similar question was answered here: brainly.com/question/25258600

8 0
3 years ago
Displays more information on the spreadsheet?
nignag [31]

<em>When you ask a question like this, you have to include a picture of what you are talking about. I'll walk you through the process. When you first start asking a question there is an option for a little paperclip on the bottom of the question box. Click on that and then select the file (the photo is considered a file by the computer) then type in what the question is and simple hit ask question. Now it will post the picture along with your question.</em>

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<em>Hope this helps,</em>

<em>Miri</em>

6 0
3 years ago
firm has 2,000,000 shares of common stock outstanding with a market price of $2 per share. It has 2,000 bonds outstanding, each
Yuki888 [10]

Answer:

A Firm

The firm's WACC is:

= 12.16%

Explanation:

a) Data and Calculations:

                                              Common               Bonds

                                                  Stock

Outstanding shares/bonds  2,000,000              2,000

Market price per unit                $2                     $1,200

Total market value             $4,000,000   $2,400,000

Total value of debt and equity = $6,400,000

Weight                                      62.5%                37.5% ($2,400/$6,400*100)

Cost of bonds (coupon rate) = 10%

Tax rate = 34%

Firm's beta = 1.5

Risk-free rate = 5%

Market risk premium = 7%

After-tax cost of bonds = 6.6% (1 - 0.34) * 10%

Cost of common stock =

Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 5% + 1.5 x (7%)

= 5% + 10.5%

= 15.5%

WACC = 15.5% * 62.5% + 6.6% * 37.5%

= 0.096875 + 0.02475

= 0.1216

= 12.16%

7 0
3 years ago
Paula Boothe, president of the Armange Corporation, has mandated a minimum 10% return on investment for any project undertaken b
Vlad1618 [11]

Answer:

Residual income= $36,000

Explanation:

Residual income is the income that is generated in excess of the minimum required rate of return, which in this case is 10%. Any income above 10% return is considered as residual income. In this case the investment is 1,800,000 and 10% of that is 180,000 (0.1*1,800,000). So any income made above $180,000 will be residual income. In order to find the residual income we subtract the minimum income required from the actual income.

In this case the minimum income required is 180,000 and the actual operating income is 216,000 so residual income=

216,000-180,000= $36,000

4 0
3 years ago
Below are the expected afterminustax cash flows for Projects Y and Z. Both projects have an initial cash outlay of​ $20,000 and
Alexus [3.1K]

Answer:

Project Y = -$1,825.80

Project Z = $4,148.00

Explanation:

Calculation are as attached in the file

5 0
3 years ago
Read 2 more answers
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