Business, 19.11.2019 07:31 xelynncaldera
Which of the following statements are true?
a. the riskiness inherent in a firm's earnings per share (eps) depends on the characteristics of the projects the firm selects, and thus on the firm's assets. however, eps is not affected by the manner in which those assets are financed.
b. potential agency problems can arise between managers and stockholders, because managers hired as agents to act on behalf of the owners may instead make decisions favorable to themselves rather than the stockholders.
c. the financial manager's proper goal should be to attempt to maximize the firm's expected cash flows, since that will add the most to the individual shareholders' wealth.
d. large, publicly owned firms like ibm and ge are controlled by their management teams. ownership is generally widely dispersed; hence managers have great freedom in how they run the firm. managers may operate in stockholders' best interests, but they also may operate in their own personal best interests. as long as they stay within the law, there is no way to either force or motivate managers to act in the stockholders' best interests.
e. the financial manager should seek that combination of assets, liabilities, and capital that will generate the largest expected projected after-tax income over the relevant time horizon, generally the coming year.
Answers: 2
Business, 22.06.2019 08:50
Dyed-denim corporation is seeking to lower the costs of value creation and achieve a low-cost position. as a result, it plans to move its manufacturing plant from the u.s. to thailand, which based on company research, is the optimal location for production. this strategic move will most likely allow the company to realize
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Business, 22.06.2019 20:20
Precision aviation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. what was the firm's roe? a. 15.23%b. 16.03%c. 16.88%d. 17.72%e. 18.60%
Answers: 2
Business, 22.06.2019 23:40
Four key marketing decision variables are price (p), advertising (a), transportation (t), and product quality (q). consumer demand (d) is influenced by these variables. the simplest model for describing demand in terms of these variables is: d = k – pp + aa + tt + qq where k, p, a, t, and q are constants. discuss the assumptions of this model. specifically, how does each variable affect demand? how do the variables influence each other? what limitations might this model have? how can it be improved?
Answers: 2
Which of the following statements are true?
a. the riskiness inherent in a firm's earnings pe...
a. the riskiness inherent in a firm's earnings pe...
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