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
Nataly_w [17]
3 years ago
8

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 $32.00 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:
velikii [3]3 years ago
4 0

Answer:

The answer is: O'Brien's MVA is $12,000,000

Explanation:

We first take the total book value of equity $20,000,000

Then e calculate the market value of the company (stock price per share times shares outstanding) = $32 per share x 1,000,000 shares = $32,000,000

The market value added (MVA) is the difference between market value and equity value:

MVA = $32,000,000 - $20,000,000 = $12,000,000

You might be interested in
Question 2 of 10
gavmur [86]

Answer:

C.

Explanation:

The term used to define standards of behavior that governs individual's and companies conduct is ethics.

The term ethics is derived from the Greek word ethos, meaning, way of living. Ethics comes under the rubric of philosophy and is related to the subject of human conduct, especially concerning the actions of humans towards the society.

Ethics are those moral principles in which the conduct of companies and human behaviors are anchored.

Therefore, the correct answer is option C.

3 0
2 years ago
Under the percentage of completion method, if the actual costs are ____ the estimated costs, the taxpayer must pay interest on t
Sphinxa [80]

Answer:

The correct answer is Less than the estimated costs.

Explanation:

The percentage method completed is an accounting practice used to recognize income in long-term contracts.

When long-term projects (greater than one year) are undertaken, the costs and revenues associated with it are incurred throughout its life.

This accounting method, as its name suggests, allows the company to account for part of the associated income and expenses incurred as the project phases are completed. Thus, the percentage complete method is understood as a method of recognition of recognition of income and expenses that is applied continuously without having to defer income and expenses at the end of the project.

8 0
3 years ago
Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists o
jarptica [38.1K]

Answer: b. The diversifiable risk of your portfolio will likely decline, but the expected market risk should not change.

Explanation:

Diversifiable risk is a risk that a particular security has or which can be seen in a certain sector. Market risk occurs when there's possibility that a particular investor will make loss due to certain factors which affects the entire market.

In the above scenario, the most likely to occur will be that the diversifiable risk of the portfolio will likely decline, but the expected market risk should not change.

It should be noted that diversification won't eliminate market risk. When more stocks are added, this brings about decline in diversification risk but market risk won't change.

5 0
3 years ago
The term __________ refers to the supplemental information provided in a proposal. It often includes examples of past projects,
natali 33 [55]

Answer:

D. appendices

Explanation:

The term appendices refers to the supplemental information provided in a proposal. It often includes examples of past projects, client testimonials, and technical specifications. Appendices basically provide the readers with the additional information which help them in better understanding the proposal in a greater detail. It is combination of additional and supplementary materials which includes the results of the past projects, testimonials, supportive data  and other technical specification of the project, which can't be included in the main body of the proposal.

5 0
3 years ago
Anyone want to be friend can meet nkr-tfvh-wms​
notka56 [123]

Answer:

im good

Explanation:

5 0
3 years ago
Other questions:
  • Product J is one of the many products manufactured and sold by Oceanside Company. An income statement by product line for the pa
    8·1 answer
  • Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep
    9·1 answer
  • Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $45,000 and a remain
    12·1 answer
  • Mustard Corporation (a C corporation) owns 15% of the stock of Burgundy Corporation (a C corporation), which pays an annual divi
    7·1 answer
  • Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction
    7·1 answer
  • Target posts signs in its stores and posts ___________on products or displays to help consumers gather information or discounts.
    6·1 answer
  • An office management firm has developed a system for efficiently organizing small medical and dental practices both through prop
    14·1 answer
  • which of the following is a benefit of preparing a cash budget? a. It helps to estimate the average collection period of sales d
    8·1 answer
  • Cape Corp. will pay a dividend of $3.60 next year. The company has stated that it will maintain a constant growth rate of 5 perc
    7·1 answer
  • Ela insistiu:
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!