1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
erik [133]
3 years ago
11

Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock

and allowed management to retain some of the firm's earnings. The firm now has 1,000,000 shares of common stock outstanding, and it sells at a price of $33.00 per share. How much value has O'Brien's management added to stockholder wealth over the years, i.e., what is O'Brien's MVA?
Business
1 answer:
shepuryov [24]3 years ago
3 0

Answer:

$13,000,000

Explanation:

Given that,

Total Book Value of Equity = $20,000,000

Common stock outstanding = 1,000,000 shares

Selling price per share = $33.00

Market value of equity:

= Selling price per share × Shares outstanding

= $33.00 × 1,000,000

= $33,000,000

O'Brien's MVA:

= Market value of equity - Total Book Value of Equity

= $33,000,000 - $20,000,000

= $13,000,000

You might be interested in
"Falling oil prices have caused a sharp decrease in the supply of oil." Speaking precisely, and using terms as they are defined
Anna35 [415]

Answer:

The answer is: D) The quotation is incorrect: A decrease in price causes a decrease in quantity supplied, not a decrease in supply.

Explanation:

A decrease in the price of a product or service will always decrease the quantity supplied and increase the quantity demanded of the product. The terms supply and demand apply to the entire curve, not an specific point in them.  

For example, the equilibrium point for milk is 5 million gallons sold at $3 each. If the government suddenly decides that it will place a price ceiling for milk at $2 per gallon (may use argument that it is a necessity good essential for the well being of children) the quantity demanded for milk will rise but the quantity supplied will fall.

That is because not every dairy business will be able to produce and sell milk at $2 and still make a profit (or meet their expected profit levels), so they will either lower their milk production (make substitute products) or go out of business.  

5 0
3 years ago
¿Cuáles son y cómo se elabora un Inventario de Mercancías NIC 2?<br> Ayuda plisssss
Leokris [45]

(ノ◕ヮ◕)ノ*:・゚✧ ✧゚・: *ヽ(◕ヮ◕ヽ)

La NIC 2 define los inventarios como activos que son: mantenidos para la venta en el curso normal del negocio, en el proceso de producción para dicha venta, o. en forma de materiales o insumos para ser consumidos en el proceso de producción o prestación de servicios.

4 0
2 years ago
An effective price ceiling will cause consumers to: Instructions: In order to receive full credit, you must make a selection for
photoshop1234 [79]

Answer:

gain surplus from paying a lower price

Explanation:

An effective price ceiling will cause consumers to "gain surplus from paying a lower price."

This is based on the idea that an effective price ceiling usually leads to prices being below the equilibrium price or equates to a lower price.

At this point, the buyers demand more of the products, while the sellers have a lower incentive to produce more. And therefore, the quantity demanded will exceed the quantity supplied.

Hence, consumers gain excess (more demands) by paying a lower price.

4 0
3 years ago
Opportunity costs refer to_____________.
Mamont248 [21]

Answer:

D. trade-offs associated with financial decisions.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Let's assume Martin can produce either 5 jeans or 10 shirts in one hour. If Martin decides to produce jeans instead, his opportunity cost are the shirts he trades off when he decided to produce jeans.

I hope my answer helps you

4 0
2 years ago
P&amp;T Inc.
iVinArrow [24]

Answer:

A short-term inducement of value offered to arouse interest in buying a product or service

Explanation:

Sales promotion can be defined as a process of trying to get a potential customer to buy the product by persuading them. Sales promotion a short-term tactic used for the purpose of boosting sales. As a method of building long-term customer loyalty, it is barely suitable. Sales promotions are aimed at getting consumers interested in purchasing a product or service.

3 0
2 years ago
Other questions:
  • Total fixed costs for Taylor Incorporated are $260,000. Total costs, including both fixed and variable, are $500,000 if 156,000
    12·1 answer
  • Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%. Banks hold no excess reser
    9·1 answer
  • Hoping to increase the chances of reaching a performance goal, the director of a research project has assigned three separate re
    11·1 answer
  • Assume you are now 25 and you want to have a million dollars by the time you are 65. if you can earn 6% per year, compounded ann
    6·1 answer
  • Suppose the nominal GDP is $25 million, the price level is 1.25, and the central bank has set the money supply at $10 million. W
    7·2 answers
  • Ginny Paulson was just promoted to marketing manager for her company. She also gets a big raise with the promotion. Because Ginn
    5·1 answer
  • 7.Consider two metropolitan areas, one that has many small school districts and one that has only a few large school districts.
    12·1 answer
  • The information given to you by your teachers is always accurate and should never be questioned. Please select the best answer f
    9·2 answers
  • Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs. The restaurant earns $1.3 million
    11·1 answer
  • You have been offered an investment that will pay you a lump sum of $30,000 25 years from today, along with a payment of $1,000
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!