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vichka [17]
3 years ago
9

The concept of market efficiency underpins almost all financial theory and decision models. When financial markets are efficient

, the price of a security—such as a share of a particular corporation’s common stock—should be _______ to the present value estimate of the firm’s expected cash flows discounted by its appropriate rate of return (also called the intrinsic value of the stock).
Business
1 answer:
siniylev [52]3 years ago
3 0

Answer:

Equal to

Explanation:

When the price of a corporation's common stock is equal to the present value of discounted future cash flows, it will show a true representation of the value of the firm and in turn investors will have confidence in the company and its projected performance.

As new shares are issued from a company the company issues the shares at a forecasted future value based on the expected cash flows of the business.

For example if a company has estimated it will have cash flow of $12 million in the next one year, and it wants to issue 6 million shares. The value of the issued shares will be $12 million/6 million= $2. The firm is leveraging on it forecasted performance and cash flows.

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Why multinational company are developed​
blagie [28]

Answer:

Multinationals provide an inflow of capital into the developing country.

Explanation:

This capital investment helps the economy develop and increase its productive capacity.

5 0
3 years ago
Read 2 more answers
Which of the following statements about entrepreneurs is FALSE? A. Entrepreneurs are people who start a new business. B. Entrepr
9966 [12]

Answer:

C. Entrepreneurs aren’t exposed to any risk when starting a new business.

Explanation:

Entrepreneurs are the person who starts their own business and took a financial risk from the start. Entrepreneurs manage the activities on their own,  develop new ideas. and create the team for the benefit of the organization

Therefore, Entrepreneur exposed to the financial risk while starting their own business

hence, the correct option is C.

3 0
3 years ago
Builtrite's upper management has been comparing their books to industry standards and came up with the following question: Why i
Vesna [10]

Answer:

Builtrite has higher than average operating expenses

Explanation:

Subtracting cost of goods sold from net sales will give you gross profit. The reason of high gross profit could be company is able to sell its products at a higher price or it is able to keep its cost of goods sold at a lower level than industry standards.

A higher-than-industry-average gross profit margin increases your chances of generating a net profit provided that you are able to keep your expenses within industry average levels.

Operating profit is the pre-tax profit or in other words it is calculated by subtracting operating expenses from the gross profit. Operating profit margin is equal to operating income divided by the total revenue. A lower operating margin despite of having higher gross profit is because the company is not able to control its operating expenses or in other words they are incurring higher operating expenses as compare to industry.

4 0
3 years ago
What is the purpose of jim lentz’s series of presentations to toyota employees in california?.
Serggg [28]
<h3>Answer</h3>

To address employees concerns and provide details about relocation.

<h3></h3>

Explanation

CEO Jim Lent addressed the employees at Toyota to their concerns and to inform them about the relocation that is planned at a board level and then it is to be implemented.

CEO of Toyota is therefore addressing the employees to provide them details about relocation and to address their concerns.

<h3>Conclusion</h3>

Jim Lent CEO of Toyota, addressed the employees to provide them details about relocation and to address their concerns.

Learn more about Business at brainly.com/question/26562433

6 0
2 years ago
Procter &amp; gamble has fickle customers and needs to rapidly innovate new products. it benefits from implementing:______.
zimovet [89]

Option (B) is a matrix organization to manage a wide variety of demographic-specific products or services.

Procter & Gamble Co (P & G) is a consumer goods manufacturer and distributor. The company's products include conditioners, shampoos, male and female blades, and razors, toothbrushes, toothpaste, dishwashing liquids, cleaning agents, surface cleaners, and air purifiers.

Procter & Gamble is not owned by a hedge fund. The company's largest shareholder is The Vanguard Group, Inc., which holds an 8.9% stake. BlackRock, Inc. holds 6.6% and 4.4% of the outstanding shares. And State Street Global Advisors

Procter & Gamble has been controversial in recent years. The osteoporosis and bone loss drug Actonel, which was co-marketed with Sanofi-Aventis, caused side effects in many patients.

Learn more about Procter & Gamble at

brainly.com/question/13754934

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5 0
2 years ago
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