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adoni [48]
2 years ago
14

2. Why might it be a plus for a company to have such a high share price that trading in its stock is discouraged? What drawbacks

might there be for a company in this situation?
Business
1 answer:
Strike441 [17]2 years ago
6 0

While a high share price discourages trading in the company's stock, it advertises the company's stellar performance to existing and potential investors.

 

A high share price also discourages corporate takeovers, assuring the jobs of senior management. Existing investors can realize some quick gains by selling their shares at high profits.

 

2. The drawback of having a high share price is that investors willing to sell off their shares cannot do so because potential buyers are discouraged. Another disadvantage is that it puts much pressure on the management to maintain the entrenched performance level. Any subsequent fall in prices will not meet favorable reviews.

 

Thus, there are pluses and minuses to having a high share price.

Learn more: brainly.com/question/19717466

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Match the pairs to their respective categories.
Anestetic [448]
*matches pairs to respective categories*
4 0
3 years ago
As a new leader you have decided to apply the path-goal theory in managing your staff. one of the two important personal charact
Anton [14]

A subordinate should have the ability to manage the organization's workforce as a leader. The subordinates' impression of their talents is an important personal quality.

<h3>What is the path-goal leadership theory?</h3>

According to the path-goal theory, a leader's conduct is influenced by their employees' satisfaction, motivation, and performance. The manager's task is considered as improving employees ’ performance in choosing the best pathways to achieve both their own and the company's goal.

  • Inclusive leaders,
  • follower traits,
  • task characteristics, and
  • motivation is all aspects of the path-goal theory

As a result, the two most important personal characteristics of subordinates in the theory. for example locus of control and abilities perception.

Learn more about Path goal theory:

brainly.com/question/17018511

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6 0
1 year ago
Given the following data: Treasury Bill Maturity DTM Bid Asked Mar 90 1.20 1.15 If you invest $10,000 today at the risk-free ra
Oksi-84 [34.3K]

Answer: $10029

Explanation:

Based on the information given in the question, if $10000 is invested today at the risk-free rate, the amount that'll be received in 90 days will be calculated thus:

= Investment × (1 + Asked) × (DTM/360)

= 10000 + (1 + 0.0115) × (90/360)

= 10000 + 1.011 × 0.25

= 10029

Therefore, the answer is $10029

7 0
3 years ago
Castor, Inc., is preparing its master budget for the quarter ended June 30. Budgeted sales and cash payments for merchandise for
kobusy [5.1K]

Answer:

Castor, Inc.

Cash Budget for the quarter ended June 30,

                                                  April           May           June

Beginning cash balance         $13,500   $16,165      $31,795

Cash collection  (25%)             13,500       7,625        10,375

Cash collection (75%)             22,875       31,125         19,125

Total cash receipts               $49,875    $54,915     $61,295

Cash payments for goods      23,200     15,300        15,700

Sales commission (5% sales)    1,525       2,075          1,275

Shipping cost (3% sales)              915        1,245            765

Office salaries                          4,500       4,500         4,500

Cash Disbursements           $30,140    $23,120    $22,240

Loans Payable (Repayment)  -3,570

Cash balance                       $16,165     $31,795    $39,055

Explanation:

A cash budget is a tool used by a company's management to forecast of the cash receipts and cash disbursements for a future period of time.  It is an important financial management tool that can be used to decide when to borrow cash to meet shortages and when to invest excess cash to generate income.  Through its preparation, management avoids liquidity problems which can ruin a business.

3 0
3 years ago
A major liquor store finds that it sells an average of 100 bottles a week of regular 750 ml bottles of Jameson Irish Whiskey. As
Semmy [17]

Answer:

  • 0.04 year
  • 200 bottles
  • 100 bottles
  • 250
  • 200

Explanation:

A)  The current order cycle length = 2 weeks

= 2 / 50 year = 0.04 year

B) The current order size

cycle time ( 2 weeks ) * demand per unit time ( 100 bottles )

= 2 * 100 bottles = 200 bottles

C) average inventory

= order size / 2 weeks = 200 / 2 = 100 bottles

D) calculate how much the liquor store spend per year on ordering

first we calculate the number of orders per year = 50 / 2 = 25

next the amount spent per year on ordering = 25 * 10 = 250

E) calculate  inventory holding costs per year

= average inventory * cost of holding per bottle

= 100 * 2 = 200

7 0
2 years ago
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