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Hatshy [7]
4 years ago
15

The primary goal of financial management is to:

Business
1 answer:
sammy [17]4 years ago
3 0

Answer:

The correct answer is letter "B": maximize the current value per share of the existing stock.

Explanation:

Financial management comprises several steps to safeguard a company's assets and sustain the firm's profitability in favor of its stakeholders. Those steps include planning, budgeting, managing and assessing risks and establishing the procedures that will be taken to keep the business going.

Thus, <em>one of the cores of financial management is to increase the company's stock value to attract more investors, bringing more money to the company for reinvestment or the payment of expenditures.</em>

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A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Proje
aliina [53]

Answer:

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.

Explanation:

a.

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

b.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

c.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

d.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.

4 0
3 years ago
Carrot Corporation, a C corporation, has a net short-term capital gain of $65,000 and a net long-term capital loss of $250,000 d
Molodets [167]

Answer:

The answer is  $45,000

Explanation:

$45,000

- Net Short Term Capital gain +Net Long Term Capital loss= 65,000+ (250,000)= -185,000

-Net Long Term Capital loss(2015)+Net Short Term Capital gain (2016)+Net Long Term Capital Gain(2017) = 60,000+45,000+35,000=140,000

-185,000+140,000= <u>(45,000)</u>

5 0
4 years ago
Read 2 more answers
Which statement is true of Critical Path Method (CPM)?
Masja [62]

Answer:

d. It determines the critical path for the completion of a series of interrelated activities.

Explanation:

The Critical Path method is a method to lay out the different steps or interrelated activities of a project, in a graphical manner, that shows the interrelations, the time each activity takes to complete, the different alternatives or paths for project completion, and the total completion time for the project.

It also shows the amount of time a delay in one of the activities would delay the project as a whole.

6 0
3 years ago
In 2014, General Mills acquired Annie's Home-grown, an organic food company, to meet a growing demand by consumers to have acces
Sedbober [7]

Answer:

A. Generating, refining, and evaluating potential marketing actions.

Explanation:

Marketing research are the processes that are used to connect consumers and manufacturers to marketers. Infornation is used to generate, refine, and evaluate potential marketing actions. It is used to evaluate marketing mix and how changes affects the consumer's behaviour.

General Mills used marketing research to identify ways to grow the brand, promote it, and evaluated plans to market it. Due to increased demand for organic and natural foods.

This is use of generating, refining, and evaluating potential marketing actions.

8 0
3 years ago
A government announces it will impose an indirect tax on the price of petrol because it wants to discourage travel by car and en
balu736 [363]

The correct answer to this open question is the following.

Here we do not have a question. Just a statement.

What is your question? What do you want to know?

However, trying to help you we can comment on the following.

If the government announces it will impose an indirect tax on the price of petrol because it wants to discourage travel by car and encourage the use of bus and rail services instead, it had to make sure that the impact will have the expected benefits because that could not always be the case.  

Some other considerations need to be made for this to happen. For instance, if the government wants to dissuade people to use their cars, the government has to make sure that the public transportation system is in optimal conditions, it is safe to ride, and can guarantee the transportation times for people to be on time in their jobs.

Otherwise, people will still be driving their cars because they think that using cars is a more safe and better way to travel.

Public transportation also has to comply with strict pollution emissions controls.

3 0
3 years ago
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