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3 years ago

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.

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The option of sticking with the current business lineup makes sense when

Mashutka [201]

Answer:

The correct answer is c. the company's present businesses offer attractive growth opportunities and can be counted on to generate good earnings and cash flows for shareholders.

Explanation:

A commercial line of products refers to products that are related to each other by some condition such as price, use or distribution. If, after evaluating the market, it is found that these products have a high growth potential, the best thing would be to continue betting on them within a reasonable period of time to reach a considerable level of sales. These products can in some way motivate the sale of others and therefore generate profits in the medium or short term for the shareholders.

4 0

3 years ago

Sally opened her own business and resigned from a job paying $25,000 per year. Her savings acccount pays 8% interest, but she wi

DiKsa [7]

Answer:

A) They would be indifferent, as Sally's income net of costs equals $25,000.

Explanation:

Sally's economic profit = accounting profit - opportunity costs

accounting profit = $12,000
opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000

economic profit = $12,000 - $12,000 = $0

Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.

7 0

2 years ago

An investment project has annual cash inflows of $2,800, $3,700, $5,100, and $4,300, for the next four years, respectively. The

lubasha [3.4K]

Answer:

Discounted payback period = 1.89 years

Explanation:

If Initial cost is $5,200

Year Cash flow Present value Present value Discounted

at 11% Cumulative cash flow

0 -5,200 1 -5,200 -5,200

1 2,800 0.9009 2,523 -2,677

2 3,700 0.811 3,003 326

3 5,100 0.73126 3,729 4,055

4 4,300 0.6587 2,833 6,887

Discounted payback period = 1 + (2,667/3003)

=1.89 years

Working

PV= (1+i)^-n

i= 11%, n= respective years 0,1,2,3,4

6 0

3 years ago

One of the arguments in favor of trade restrictions is the foreign export subsidies argument.

svet-max [94.6K]

Trello!
it should be TRUE!
have a nice day :D

:>

3 0

3 years ago

The taylor rule puts _________ as much weight on closing the unemployment gap as it does on closing the inflation gap.

ella [17]

Taylor's rule puts double weight on closing the unemployment gap in comparison to the inflation gap.

<h3>What is inflation?</h3>

Inflation is the scenario where the price of goods or services is increased in such a way that results in decreasing the purchasing power of people.

The focus of Taylor's principle is to close the gap in unemployment by much double weight in contrast with the gap in inflation. It wants that the unemployment gap should be twice the inflation gap at the time of closing.

Therefore, the twice weight should be put up on unemployment as suggested by the rule of Taylor.

Learn more about Taylor in the related link:

brainly.com/question/461247

#SPJ1

8 0

2 years ago