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
stich3 [128]
3 years ago
14

Explain why we can say that maximizing firm value is equal to maximizing stockholders’ equity.

Business
1 answer:
Pachacha [2.7K]3 years ago
4 0

Answer:

Because stakeholders are a part of the company

Explanation:

Stakeholders and stockholders are the people who are considered as a major part of any organisation. Shareholders, managers, owners and employees are the stakeholder. Increase in the firm’s value indirectly benefits the shareholders because it also improves their value and it also maximises their shareholder equity. Increase in the firm’s value means an increase in the share price and equity.

You might be interested in
John Inc. is a manufacturing business. For a given accounting period, the business’s total revenue amounted to $75,000, while it
maksim [4K]

Answer:

John Inc.'s return on equity for this accounting period is:

B.

26.66 percent

Explanation:

Return or equity is a ratio used to calculate the efficiency of a certain business. It is calculated by dividing the net income on the stockholders' equity. Therefore, in our case, we translate this into 40 000 dollars divided into 150 000. Giving us a  result of .26 %. Thus, the correct option is the B. option.

8 0
3 years ago
How do trade agreements of international organizations affect trade? by incentivizing the development of trade policies by elimi
kupik [55]

Any contractual arrangement between governments addressing their trading interactions is referred to as a trade agreement. Trade treaties can be bilateral or multilateral, that is, among two or more states.

<h3>Why are trade agreements important?</h3>

Countries engage in international trade because there are financial benefits to be had. These benefits include expanded product diversity, cheaper pricing, superior quality, enhanced technological spread, and increased consumption by the country as a whole. Increased trade openness has been associated with higher GDP growth.

Thus Option C is correct about the trade agreement.

For more information about the Trade agreement refer to the link:

brainly.com/question/1550074

7 0
2 years ago
In the short run, a profit-maximizing monopolistically competitive firm sets it price: A) equal to marginal revenue. B) equal to
Taya2010 [7]

In the short run, a profit-maximizing monopolistically competitive firm sets it price: above marginal cost. Option C. This is further explained below.

<h3>What is marginal cost?</h3>

Generally,  The marginal cost of production is the incremental cost incurred to produce one more unit of a good or service.

In conclusion, Initially, a monopolistically competitive business sets its price at a level above its marginal cost in order to maximize its profits.

Read more about marginal cost

brainly.com/question/7781429

#SPJ1

3 0
2 years ago
Most choices involve _________________, which involves comparing the benefits and costs of choosing a little more or a little le
mixas84 [53]

Answer:

marginal analysis

Explanation:

I hope its right

7 0
2 years ago
A department had 600 units which were 40% complete in beginning Goods in Process Inventory. During the current period, 7,000 uni
STALIN [3.7K]

Answer:

The equivalent units produced is 7320

Explanation:

To get the units produced in this period we ignore the beginning inventory, we just add new transferred out  +ending inventory

  • 7,000 units were transferred out  
  • Al the end , we have 800 at  40%= 320

Adding the 3 items

UP=7000+320=7320

4 0
2 years ago
Other questions:
  • An ad for asian sensations newest product line of snack foods encourages its readers to "thai something new." the creatives who
    6·1 answer
  • A small local bank has made many loans to several energy companies recently because these companies have had no problem repaying
    8·2 answers
  • Organizational strengths or abilities, developed over a long time period, that customers find valuable and competitors find diff
    12·1 answer
  • Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 25,000 to 100,000 memory chips per year. Wit
    7·1 answer
  • 12 Unless otherwise posted, in Florida, the speed limit for most municipal areas is 40 mph O 25 mph )45 mph 30 mph​
    14·1 answer
  • Strategies developed at the departmental level, such as the accounting, human resources, production, and marketing departments,
    12·1 answer
  • Wattan Company reports beginning inventory of 10 units at $60 each. Every week for four weeks it purchases an additional 10 unit
    13·1 answer
  • Difference between administrative manpower and technical manpower​
    6·2 answers
  • What is the most likely reason an HR manager would seek to adjust the
    13·2 answers
  • Alice Copper has wages of $120,000 and dividend income from a mutual fund of $5,000. She has allowable itemized deductions of $9
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!