What is meant by goal maximization of the shareholders' wealth?

Stoneheart Group is expected to pay a dividend of $3.27 next year. The company's dividend growth rate is expected to be 3.4 perc

shepuryov [24]

Answer:

The stock price is $37.16

Explanation:

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.

Formula to calculate the value of stock

Price = Dividend / ( Rate or return - growth rate )

Price = $3.27 / ( 12.2% - 3.4% )

Price = $3.27 / 12.2% - 3.4%

Price = $3.27 / 8.8%

Price = $37.16

7 0

3 years ago

Command-and-control (sometimes called direct control) is when the government passes legislation specifically regulating an activ

lys-0071 [83]

Answer:

1. Under command-and-control regulation, the government will sometimes specify the technology that firms must use in production. TRUE, e.g. currently the US government banned Huawei from providing 5G technology in the US due to security concerns even though that provides the best 5G technology in the world.

2. The government may decide on a specific amount of pollution that firms can legally emit. TRUE, the EPA sets the standards and companies must follow them, whether they are too high or too low maybe subject to an extensive debate.

3. A limitation of a command-and-control regulation is that firms have no incentive to remove pollution once they are within the legal pollution limits. TRUE, if the company is complying with current regulation, then that is all it needs to keep functioning without any problem.

4. Command and control situations are always the best option when it comes to reducing the amount of pollution. FALSE, when is the government or Congress the most efficient at doing something. Efficiency is not a characteristic of any government entity.

5. Command-and-control is more flexible than market-based regulation. FALSE, the terms command and control should give you an idea that government intervention can be anything but flexible.

6. A command-and-control regulation is subject to political considerations. TRUE, command and control regulation is set up by government agencies or Congress and both are political entities by definition. E.g. some governments impose harder environmental controls through the EPA, others impose softer or no controls at all.

4 0

3 years ago

Askew Company uses a periodic inventory system. The June 30, 2021, year-end trial balance for Askew company contained the follow

Softa [21]

Answer:

$233,000

Explanation:

As we know that

Cost of goods sold = Beginning inventory + net purchase - ending inventory

where,

Beginning inventory = $32,000

Net purchase is

= Purchase - purchase discounts - purchase returns + freight in

= $240,000 - $6,000 - $10,000 + $17,000

= $241,000

And, the ending inventory is $40,000

So, the cost of goods sold is

= $32,000 + $241,000 - $40,000

= $233,000

We simply applied the above formula so that the cost of goods sold could come

7 0

3 years ago

Successful change requires that organizations be capable of both creating and implementing ideas, which means the organization m

-Dominant- [34]

Ambidextrous
It means utilizing both hands equally fluidly or deftly
Ambidextrous organizations - Exploratory units are separated from their traditional units in ambidextrous organizations, which encourages them to create their own systems, organizations, and cultures. But at the senior management level, they also closely coordinate these new divisions with the already-existing organizations.
Organizations can benefit from ambidexterity in various ways. The most important result of ambidexterity is creativity since innovation requires both exploratory and exploitative characteristics. Ambidexterity is the capacity to maintain a balance between exploratory and exploitative processes.
understandings of the four behaviors at the core of an ambidextrous organisation
a tactical approach to exploring
senior management commitment
separation from the unethical companies
a shared culture across all teams
To learn more about the ambidextrous organization please visit-
brainly.com/question/838485
#SPJ4

3 0

2 years ago

A firm follows a(n) ________ when less than 70 percent of its revenues come from a single business and there are few, if any, li

zysi [14]

Answer:

A. Unrelated diversification strategy

Explanation:

A firm follows an unrelated diversification strategy when less than 70 percent of its revenues come from a single business and there are few, if any, linkages among its businesses.

Diversification: This is the art of entering product markets which is different from those in which the firm is currently engaged in. This implies that diversification is when firms direct resources into a new product, that is, producing a different type of product from the existing one.

Diversification is divided into two

1. Related diversification

2. Unrelated diversification

1. Related diversification: This is the process in which the two products involved have a form of commonalities. This result to enjoying economies of scale.

2.Unrelated Diversification: This form of diversification occurs when a firm adds unrelated product lines and penetrates new markets. The new product introduced has to relation or connection with the the previous or existing product.

Unrelated diversification can be accomplished using the following methods:

1. Developing new competences to use new market opportunities.

2. Using the existing basic competences of the company and expanding from existing markets into new ones and starting new lines of production.

3. Penetrating completely new markets. Usually such opportunity can be identified as a result of the main company business.

5 0

2 years ago

What is meant by goal maximization of the shareholders' wealth?​

What is meant by goal maximization of the shareholders' wealth?