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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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Assume J. K. Lumber increases its operating efficiency such that costs decrease while sales remain constant. As a result, given
Mars2501 [29]

Answer:

D) return on equity will increase.

Explanation: Return on equity is a financial term that explains the net income of a business venture. There are several ways through which the return on equity can be improved or increased in business.

(1) Reduction in the cost of operations or production of goods and services

(2) increase in the price of the product etc.

If the cost of producing a given Quantity of goods is reduced with sales remaining constant,THE RETURN ON EQUITY WILL INCREASE AS A RESULT OF THE INCREASE IN NET INCOME DUE TO REDUCED COST OF OPERATIONS OR PRODUCTION OF GOODS.

7 0
3 years ago
Read 2 more answers
How will a new front desk manager address a problem of lateness in a hotel.​
Leya [2.2K]

Answer:

They will have a system like a lot book where they would take in the visitors details and then Mark in or out and time of arrival and leaving

Hope this helps :)

Explanation:

5 0
3 years ago
You win the lottery and must decide how to take the payout. Use a 10​% discount rate. What is the present value of $ 12 comma 00
AlexFokin [52]

Answer:

PV= $45,489.44

Explanation:

Giving the following information:

Discount rate= 10%

Cash flow= $12,000

Number of years= 5

First, we need to calculate future value. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {12,000*[(1.1^5) - 1]} / 0.1

FV= $73,261.2

Now, the present value:

PV= FV/(1+i)^n

PV= 73,261.2/1.1^5

PV= $45,489.44

8 0
3 years ago
Kater Company manufactures shelving units. The company receives pre-cut wood, drills holes in the wood so that movable shelves m
MArishka [77]

Answer: Please see below for answers.

Explanation:

Variable costs are referred to as  costs  incurred to a company which change  as the  volume of production by the company or business changes   that is  when the volume of production increases, the costs increases , and decreases with decreased production.

Fixed costs  are expenses incurred to a company which do not change in relation to the volume of production by the company or business that is  when the volume of production increases or decreases, the  costs remains the same.

a. Supervisor of the Drilling Department----- Fixed cost

b.Oil used to lubricate drill press machines---- Variable cost

c.Propane for forklift trucks used to move the material from the Drilling      Department to the Assembly Department---- Variable cost

e.Natural gas used to heat the plant----- Variable cost

f.Security guard---- fixed cost s

g.Insurance on factory building----- Fixed costs

h.Electricity to power drill press machines---- Variable costs

.i Rent of factory building-Fixed costs

4 0
3 years ago
Requirement 1. Identify each account as an asset​ (A), liability​ (L), or equity​ (E). Asset (A), Liability (L), or Equity (E)?
motikmotik

Answer:

a. Interest Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

b. Accounts Payable

Identification: Liability

Increases with: Credit

Normal Balance: Credit

c. Calhoun, Capital

Identification: Equity

Increases with: Credit

Normal Balance: Credit

d. Office Supplies

Identification: Asset

Increases with: Debit

Normal Balance: Debit

e. Advertising Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

f. Unearned Revenue

Identification: Liability

Increases with: Credit

Normal Balance: Credit

g. Prepaid Rent

Identification: Asset

Increases with: Debit

Normal Balance: Debit

h. Utilities Expense

Identification: Liability

Increases with: Credit

Normal Balance: Credit

i. Calhoun, Withdrawals

Identification: Equity

Increases with: Debit

Normal Balance: Debit

j. Service Revenue

Identification: Asset

Increases with: Debit

Normal Balance: Debit

5 0
3 years ago
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