Generally, a board member who is a source of information about a firm's day-to-day activities is classified as a(n)<u> inside </u>director.
A director is a person on the company's board of directors who acts as the governing body of the organization. The board of directors, often elected by the company's shareholders, creates policy for the company as a whole and oversees leadership positions in the organization. They guide, advise and run the organization.
Board members are part of the governing body of the organization. Committed to the long-term interests of the organization, they meet regularly to oversee and direct operations, set policy, approve business decisions, evaluate operating performance, and carry out fiduciary responsibilities.
The board membership application process includes several steps. In most corporate boards, a nominating committee interviews candidates and decides who should join the board. Board members then vote on whether to elect the candidate selected by the nominating committee.
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Answer:
Stock Y is overvalued and Stock Z is undervalued.
Explanation:
The stock is fairly valued when the required rate of return on the stock is equal to its expected return. If the expected return on the stock is more than the required rate of return, the stock is undervalued and vice versa.
The required rate of return on the stock is calculated under the CAPM approach suing the following formula.
r = rRF + Beta * rpM
Where,
- rRf is the risk free rate
- rpM is the risk premium on market
r of Stock Y = 0.052 + 1.3 * 0.077 = 0.1521 or 15.21%
The required rate of return of Stock Y (15.21%) is more than its expected rate (14.9%) which means the stock is overvalued.
r of Stock Z = 0.052 + 0.95 * 0.077 = 0.12515 or 12.515%
The required rate of return of Stock Z (12.515%) is less than its expected rate (12.8%) which means the stock is undervalued.
Answer: f. Supply of manufactured houses shifts leftward and manufactured houses increase in price
Explanation:
All else being equal, when the price of an input into the production process increases, it makes producing the goods in question more expensive and so producers will respond by reducing production levels to maintain Profitability.
As the price of cement rises, making manufactured houses becomes more expensive and so the makers of manufactured houses will reduce the number of manufactured houses they make. This will reduce Supply thereby shifting the Supply Curve to the left. The new Equilibrium level will indicate a higher Equilibrium price as shown in the attached graph.
Answer:
At 11.14% interest rate we need to invest 8,650.71 today
At 5.57% interest rate we need to invest 92,090.97 today
Explanation:
We will calculate the present value of 1,000,000 at 11.14% for 44 years
and at 5.57% for 44 years
Maturity 1,000,000.00
time 44 years
if rate = 11.4% = 0.114
PV 8,650.71
if rate = 5.57% = 0.0557
PV 92,090.97
