Answer:
The correct answer is letter "B": maximize the current value per share of the existing stock.
Explanation:
Financial management comprises several steps to safeguard a company's assets and sustain the firm's profitability in favor of its stakeholders. Those steps include planning, budgeting, managing and assessing risks and establishing the procedures that will be taken to keep the business going.
Thus, <em>one of the cores of financial management is to increase the company's stock value to attract more investors, bringing more money to the company for reinvestment or the payment of expenditures.</em>
Answer:
no impact
Explanation:
The journal entry to purchase the supplies for cash
Supplies Dr $ 1,300
To Cash A/c $ 1,300
(Being the purchase of supplies is recorded)
For recording this we debited the supplies as it increased the assets and credited the cash as it decreased the assets
Therefore there is no impact on the accounting equation
Answer:
true
Explanation:
the consumer price index measures the average prices of a basket of goods and services, it includes housing costs, food, medical care, transportation, educational expenses, etc.
The current price of the CPI basket can be used to measure inflation by comparing it to the price of last year's basket ,or if you go a little further, you can compare it to the base year's basket of goods.
Answer:
Annual financial disadvantage = $ (669,600)
Explanation:
Relevant cost are future incremental cash costs that arise as a direct consequence of a decision.
The relevant costs of this decision to disconnected includes the following:
- The variable cost of making the product = $19 per unit
- Sales revenue at a price of $25
- Savings in avoidable fixed costs (102,000-72,000) = 30,000
Annual financial advantage
$
Lost contribution $(25-19)× 4,300 units = (85,800)
Saving in fixed cost = <u> 30,000</u>
M<em>onthly net loss </em><em><u> 55,800</u></em>
Annual financial disadvantage
Monthly net loss × 12 months
= (55,800) × 12
= $ (669,600)
