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3 years ago

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A. What is the significance of voting rights to the ordinary shareholders? What is a proxy? Why do proxy fights occur?

1 answer:

oksian1 [2.3K]3 years ago

4 0

Answer:

a. What is the significance of voting rights to the ordinary shareholders? What is a proxy? Why do proxy fights occur?

Voting rights, to ordinary shareholders, is the upside of holding common stock, with the downside being that they have less preference of payment than bondholders, and preferred stock holders.

A proxy is a group of shareholder activists who attempt at enacting a particular change within the company. Proxy fights occur because proxies often meet resistance from the firm's current board.

b. Briefly explain the factors that influence the planning of the capital structure in practice.

There are many factors that influence the planning of the capital structure. For example, if interest rates are low, the board may plan for more debt and less equity, while the opposite would occur if interest rates are high.

In general terms, boards and managers tend to like debt because they represent the chance of leveraging the company, and a high leverage can increase returns to shareholders by a large margin if the economic performance of the firm is good.

c. ‘Bonus shares represent simply a division of corporate pie into a large number of pieces.’

Bonus shares are stock issued in place of dividends. In other words, when profits are distributed, stockholders get even more stock, instead of cash. Bonus shares, therefore, increase the amount of the firm's stock by the value of current profit, slicing the corporate pie into a larger number of pieces.

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Starting the next task before the first task is complete is _____ Group of answer choices slack lead negative lead float lag

Charra [1.4K]

Starting the next task before the first task is complete is lead.

In the eyes of some businesses, a "lead" is a contact that has already been identified as a potential client, whereas for other businesses, a "lead" is any sales contact. However, a lead's potential to become a future client is the same regardless of how it is defined.

A lead is, to put it simply, a person or group who is interested in what you are selling. Contact details are shared, such as an email address, a phone number, or even a social network account, to demonstrate the interest.

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6 0

2 years ago

At the end of this month, Les will start saving $200 a month for retirement through his company's retirement plan. His employer

aleksklad [387]

Answer:

Amount per month (A) = $200 + $0.50 x $200 = $300

Interest rate (r) = 8.25% = 0.0825

Number of years (n) = 30 years

No of compounding periods in a year (m) = 12

Future value = ?

FV = A(1 + r/m)nm - 1)

r/m

FV = $300(1 + 0.0825/12)30x12 - 1)

0.0825/12

FV = $300(1 + 0.006875)360 - 1)

0.006875

FV = $300(1.006875)360 - 1)

0.006875

FV = $300 x 1,568.218999

FV = $470,465.70

The correct answer is D

Explanation:

In this case, there is need to apply the formula for future value of an ordinary annuity on the ground that compounding is done monthly. In the formula, monthly deposit (A) is $300, number of years is 30 years and interest rate (r) is divided by 12 because compounding is done on monthly basis. The number of years is also multiplied by the number of times interest is compounded in a year.

7 0

3 years ago

In a simple economy in which prices are constant and with no income taxes or imports, the marginal propensity to consume is 0.8.

lutik1710 [3]

Answer: Increase by $250

Explanation: As per the general rule of economics when there is an increase in income, that increase will eventually lead to increase in expenditure.

As, there is an increase in investment in the given case so it will result in increase in income for the economy.

We can compute it as :-

$change\:in\:income=\frac{change\:in\:investment}{1-MPC}$

$change\:in\:income=\frac{\$50}{1-0.8}$

= $250

Therefore, the expenditure would increase by $250

5 0

3 years ago

A company is considering replacing an old piece of machinery, which cost $601,300 and has $350,900 of accumulated depreciation t

Kazeer [188]

Answer:

Question Aa. Alternative 1–$1,253,600

Alternative 2 –$1,230,300

Differential effect $ 23,300

b.The company should replace the old machine.

c Sunk cost $250,400

Question Ba. Alternative 1–$488,000

Alternative 2 –$466,000

Differential effect $ 22,000

b.The company should replace the old machine.

c Sunk cost $250,000

Explanation:

Question Aa. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $64,500 $64,500

Costs:

Purchase price 0 –$483,600 –$483,600

Variable production costs (8 years)–$1,253,600 –$811,200 $442,400

($156,700*8=$1,253,600)

($101,400*8=$811,200)

Income (Loss) –$1,253,600 –$1,230,300 $ 23,300

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formula

Sunk cost=$601,300-$350,900

Sunk cost=$250,400

Question Ba. Preparation of a differential analysis dated September 13

DIFFERENTIAL ANALYSIS

Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2)

September 13

Continue with Old Machine (Alternative 1); Replace Old Machine (Alternative 2) ; Differential

on Income (Alternative 2)

Revenues:

Proceeds from sale of old

machine $ 0 $231,000 $231,000

Costs:

Purchase price 0 –$545,000 –$545,000

Variable production costs (8 years)–$488,000 –$152,000 $336,000

($61,000*8=$488,000)

($19,000*8=$152,000)

Income (Loss) –$488,000 –$466,000 $ 22,000

b. The company should replace the old machine.

c. Calculation for The sunk cost

Using this for formula

Sunk cost= Book value- Accumulated

depreciation

Let plug in the formua

Sunk cost=$600,000-$350,000

Sunk cost=$250,000

6 0

2 years ago

PLEASE HELP ASAP!! WILL MARK BRAINLIEST!! <br> How is per capita output determined and used?

Mashcka [7]

Answer:

Real GDP per capita is a measurement of the total economic output of a country divided by the number of people and adjusted for inflation.

Explanation:

I'm not sure if this is what you were looking for but this is my answer.

6 0

3 years ago