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4 years ago

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

Business

1 answer:

Pachacha [2.7K]4 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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A. 8$ <br> B. 9$<br> C. 10$<br> D. 30$

Reptile [31]

The equilibrium is the middle, or the point where the lines meet
So when we look at the point at which they lie at, we can see that it isn't exactly eight and it isn't exactly ten, it's in between those two numbers
So the answer is nine dollars

6 0

3 years ago

Feemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets a

damaskus [11]

Answer:

$288 (F)

Explanation:

In order to calculate activity variance we subtract actual results from the flexible budget. Moreover, the flexible budget is determined by taken into account both fixed and variable expense of the activity. This is shown below:

Flexible Budget of Selling and Administrative Expense = 25,900 + (2.1 x 5,980) = $38,458

Variance = 38,170 - 38,458 = $288 (F)

Because the actual expense is less than the flexible budget, the variance is favorable (F).

Note: Variable flexible budget is calculated by multiplying the variable rate with the actual units produced.

5 0

3 years ago

Outstanding stock of the Ayayai Corporation included 40000 shares of $5 par common stock and 13000 shares of 5%, $10 par non-cum

elena-14-01-66 [18.8K]

Answer:

$6,500

Explanation:

outstanding common stock 40,000

outstanding preferred stock 13,000 stocks of 5%, $10

preferred stock dividends per year = 13,000 x 5% x $10 = $6,500

The company only paid $4,000 in dividends during 2019, but since the preferred stocks are non-cumulative, the remaining $2,500 will not be paid in 2020.

dividends paid during 2020 = $6,500

If the preferred stocks were cumulative, then the company would have paid $6,500 + $2,500 = $9,000 in 2020

3 0

3 years ago

Read 2 more answers

The Hall Company is a craft store that wants to measure the success of its coupons, displays, and pricing structure. These eleme

Airida [17]

In my life I’m susisusususu

4 0

3 years ago

The partial worksheet for the Jamison Company showed the following data on October 31, 2019. Income Balance Statement SheetAccou

stealth61 [152]

Answer and Explanation:

The Journal entries are shown below:-

1. Fee Income Dr, $26,000

To Income Summary $26,000

(Being transfer of fees income is recorded)

2. Income Summary Dr, $13,150

To Utilities Expenses $500

To Salaries Expenses $10,400

To Rent Expenses $1,000

To Supplies Expenses $400

To Depreciation Expenses-Equipment $850

(Being transfer of all expense is recorded)

3. Income Summary Dr, $6,850

To Jason Jamison, Capital $6,850

(Being capital transfer is recorded)

4. Jason Jamison, Capital Dr, $1,500

To Jason Jamison, Drawing $1,500

(Being transfer drawings to capital account is recorded)

3 0

3 years ago