As a result of Institutional Investors having so many shares, they are able to <u>remove some </u><u>or even </u><u>all </u><u>of the </u><u>members </u><u>of the </u><u>Board</u><u>. </u>
<h3>Who are Board members?</h3>
- People chosen to represent the shareholders by overseeing the affairs of management.
- They are voted in by shareholders.
Institutional Investors such as Mutual Funds, own so much stock in companies that their vote can remove board members. With enough influence and voting strategy, they could even remove the entire Board.
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Answer:
B. False
Explanation:
Patents may be defines as when a legal authority or permission granting a right for a given time, in particular exclusive and right to exclude others from the production, use, or sale of an invention.
Therefore the given statement is wrong as patents are not discouraging the organizations from carrying out to extensive primary research so, the correct answer is False.
Answer:
a. Dividend growth rate = 9%
b. $40
c. If Price is reduced then Earning per share will also decrease.
Explanation:
a. The computation of Growth rate is shown below:-
Share price = Expected dividend ÷ (Cost of equity - Dividend growth rate)
$80 = $4 ÷ (0.14 - Dividend growth rate)
11.20 - 80 × Dividend growth rate = 4
Dividend growth rate = 9%
b-1 The computation of Price is shown below:-
= Expected dividend ÷ (Cost of equity - Revised downward percentage)
= 4 ÷ (0.14 - 0.04)
= 4 ÷ 0.10
= $40
b-2 If Price is reduced then Earning per share will also decrease.
Answer:
a. The marginal revenue curve and the demand curve would coincide.
Explanation:
Monopolistic competition can be defined as the market structure which comprises of elements of competitive markets (having many competitors) and monopoly. Under monopolistic competition, organizations
If a monopolist could perfectly price-discriminate (LO1, LO4), the marginal revenue curve and the demand curve would coincide.