Financial managers should strive to maximize the current value per share of the existing stock to: maximize shareholders' wealth.
What is the overriding goal of financial management?
The main objective of financial management is to increase shareholder's wealth such that share price increases in value year-in-year-out.
The financial managers would achieve this goal by investing in projects whose net present value is positive, in other words, the NPV per share is the expected increase in value per share of existing stock.
In short, financial strategies put in place to achieve increasing share price year-in-year-out are aimed at wealth maximization
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Answer:
See explanation below
Explanation:
Correlation Coefficient - The degree of the relationship between two variables.
Correlation - The tendency of two variables to move together.
Capital Asset Pricing Model - This represent the return that reflects risk remaining after diversification.
Market Portfolio - A portfolio consisting of all stocks.
Expected Return on a Portfolio - This represents the weighted average of the expected returns on individual components.
Market Risk Premium - The difference between the market rate of return and the risk free rate
Beta - The variable that shows the extent to which a stock’s return moves up or down with the market.
S&P 500 is empirically used to measure Beta
Answer:
Planning - June 2017: Raised subscription fee to $25.50 per month from July 2017 onward. The budgeted number of subscribers for this monthly fee is shown in the July - September data table.
Control - June 20172017: Informed existing subscribers that from July onward, monthly fee would be $25.50.
Planning - July 2017: Offered e-mail service to subscribers and upgraded other online services.
Control - October 2017: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 20172017 data in the July - September data table.
Planning - October 2017: Reduced subscription fee to $22.50 per month from November 20172017 onward.
Give two examples of other planning decisions - Raise or lower advertising fees and Charge a fee to on-line retailers when customers click from PostNews.com to the retailers website.
Give two examples of other control decisions - Evaluate how customers like the new format for the weather information and working with an outside vendor to redesign the website and evaluating whether the access waiting time has been reduced
Explanation:
There are different methods for planning and controlling the activities of a given company. Most of the methods used are based on the operation and service of the company. This is to ensure that the activities of the company are properly outlined for valuable customers to ensure they can access the necessary information they need.
Answer: A. is an institution that brings together buyers and sellers.
Explanation: A market is an institution that brings together buyers and sellers of goods and services.
A market can also be said be a place where goods and services are exchanged and where buyers and sellers interact.
A market can be face to face or virtual (online).
Answer:
Annual economic profit = $113,000
Explanation:
Given:
Expenses on Real Estate = $150,000
Building rent = $17,000
Average spending on Ingredients = $20,000
Total anticipated revenue = $300,000
Computation of annual economic profit:
Annual economic profit = Total anticipated revenue - Expenses on Real Estate - Building rent - Average spending on Ingredients
Annual economic profit = $300,000 - $150,000 - $17,000 - $20,000
Annual economic profit = $113,000