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
A monopolist does not have a supply curve because the firm's decision about how much to supply is impossible to separate from th
Stella [2.4K]
True. A monopolist does not face the same constraints as an open or free market but instead is bounded by the consumers' demand for its products. Therefore, the firm's decision about how much to supply is directly related to its demand curve because they can produce as much or as little as the consumes demand. 
7 0
3 years ago
Declining transport rates per unit of weight as the weight shipped increases represents ______.
Likurg_2 [28]

Answer: economy of scale

Explanation:

8 0
1 year ago
The main monitoring and controlling tasks performed as part of project ____ management include monitoring and controlling projec
Vinil7 [7]
I believe it would be scope
4 0
3 years ago
The term "content adjacency" refers to __________.
ioda

Answer:

The correct answer is the third option: a concern that an advertisement will run near offensive material, embarrassing an advertiser and/or degrading their products or brands.

Explanation:

To begin with, the concept of <em>''content adjancency''</em> is known as the problem that many companies nowadays faces due to the new social networks that keep growing evey year. It consists in the situation where an advertiser or firm's concern is with the fact that if the advertisement will run near offensive material such that the company's name will suffer disadvantages due to the fact that their advertisement will be in those places and people might tend to relate them.

4 0
3 years ago
A company acquired an office building on three acres of land for a lump-sum price of $3,150,000. The building was completely equ
Furkat [3]

Answer:

$1,680,000

Explanation:

Based on the information given we were told that the fair value of the building was the amount of $1,680,000 which means that the amount that the company would record the building is the fair value amount of $1,680,000.

Therefore the amount that the company would record the building is $1,680,000.

6 0
2 years ago
Other questions:
  • Most founders' agreements include a ________ clause, which legally obligates the departing founder to sell to the remaining foun
    11·1 answer
  • What are three items that the national government provide
    14·1 answer
  • A company that packages and distributes fruit for on-the-go lunches has established a differentiation. they are packaged in such
    5·1 answer
  • Kevin has considered selling franchises of his very successful hardware store. however, he is concerned that the franchises will
    7·1 answer
  • Kelly Enterprises' stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75%
    5·1 answer
  • Account Title Debit Credit
    14·1 answer
  • When analyzing financial statements it is important to recognize that accounting distortions can arise. Accounting distortions a
    7·1 answer
  • The next step after developing a market-product grid and estimating market sizes in the segmentation process is to ________ appr
    9·1 answer
  • Suppose the price elasticity of demand for a product is 0.5. If a supplier wants to increase revenue, what change should it make
    14·1 answer
  • Learning: Share 2 main things you learned about communications in Module 2.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!