All categories

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.

You might be interested in

The aspect of business ethics that examines business institutions from a social rather than an individual perspective is referre

butalik [34]

It is referred to as DECISION MAKING FOR SOCIAL RESPONSIBILITY. Social responsibility has to do with people and organizations behaving and conducting business ethically and with sensitivity toward cultural, economic, social and environmental issues.

4 0

3 years ago

fetzer company declared a $0.55 per share cash dividend. the company has 480,000 shares authorized, 456,000 shares issued, and 1

Svetllana [295]

Debit Retained Earnings $250,800; credit Common Dividends Payable $250,800

<h3>What is a dividend?</h3>

A dividend is the distribution of profits to shareholders by a corporation. When a corporation makes a profit or has a surplus, it has the option of paying a portion of that profit as a dividend to its shareholders. Any money that is left over is taken out and put back into the business.

The total dividend is divided by the number of outstanding shares to determine the dividend per share.

A corporation may choose to disperse a portion of its income in one of four different ways. Your monthly brokerage statement may include information about dividends paid on CASH, STOCK, HYBRID, or PROPERTY investments.

Shares issued= 456,000

Per share cash dividend = $0.55

Dividends Payable = 456,000 x $0.55 = $250,800

Debit Retained Earnings $250,800, credit Common Dividends Payable $250,800

To know more about dividends, visit:

brainly.com/question/29510262

#SPJ1

4 0

1 year ago

What are the characteristics of open and honest communication?

earnstyle [38]

Answer:

being open and honest builds a sense of self-worth. It is about being moral, truthful to yourself and with others.

Explanation:

4 0

3 years ago

A best-seller novel sells for $28 in hardback edition and $12 in a paperback edition. a book store's sales of both editions tota

Mekhanik [1.2K]

The number of each type of book is what is unknown, so we can represent those quantities with variables. Let x = the number of hardbacks and y = the number of paperbacks. Then we know that: x + y = 65 (the total number of books sold) We also know the total cost of both editions, which is $1356. It can be written algebraically as: 28x + 12y = 1356 We now have a system of two equations, which can be solved by substitution. It would be easier to solve the first equation for either x or y and substitute that into the second equation.

6 0

3 years ago

Blowing Sand Company has just received a one-time offer to purchase 10,000 units of its Gusty model for a price of $22 each. The

VLD [36.1K]

Answer:

a. Accept the order

b. Increase in short-term profit of $50,000

Explanation:

<em>Note : Blowing Sand has "enough excess capacity" this means that fixed cost will be the same in the range or they will be ocurred whether or not the special order is accepted.</em>

Therefore fixed costs are Irrelevant for this decision.

<u>Incremental Costs and Revenues - accept the special order</u>

Sales ( 10,000 units × $22 each) $220,000

<em>Less</em> Variable Costs ( 10,000 units × $17each) ($170,000)

Net Income $50,000

The special order will result in an increase in short term profit of $50,000. Therefore, Blowing Sand Company should accept the order.

8 0

4 years ago

Read 2 more answers