Answer: E) price-earnings ratio will be 14.26 ex-dividend.
Explanation:
Stock prices generally decrease in price by the price of the dividend on ex-dividend date.
This means that this stock will reduce to:
= 31.17 - 1.09
= $30.08
Price to Earnings ratio = Stock price/ Earnings per share
= 30.08/2.11
= $14.26
<em>Option E is correct. </em>
Answer:
The correct answer to the following question will be Option D (Financial distress and agency costs).
Explanation:
- A cost of an agency is a form of company's internal expense that comes from an employee working on behalf of action of the principle. Agency costs usually occur from core redundancies, confusion, and delays, such as shareholder and management conflicts of interest.
- Distress expense applies to the expenses that a financially distressed company faces beyond the business cost, such as increased capital expenses. Troubled companies tend to have a tougher time fulfilling their financial responsibilities, which turns into a higher chance of default.
- When evaluating the company's value as a feature of market structure, the present value of the tax shield gain is balanced by the current value of the anticipated financial distress and agency expenses, which results in an ideal internal market structure.
Therefore, Option C is the right answer.
Answer:
The correct answer is C) Employment-at-will
Explanation:
Under the employment-at-will doctrine, employers can dismiss an employee for any reason as long as the reason is not illegal (for example, firing someone because of his race or sex, which would be illegal discrimination), and employees can leave the job at anytime at will. Under this doctrine, if you do not want to keep working, you just stop going to your job.
The benefit of this doctrine is that it gives more labor flexibility and avoids the existence of lawsuits. The con of this doctrine is that it reduces labor protections.
Answer:
Project Y = -$1,825.80
Project Z = $4,148.00
Explanation:
Calculation are as attached in the file
