The primary goal of a publicly-owned firm interested in serving its stockholders should be to

Video Transcript

The solution is available. This is the first time. The concept. The term equity is used to describe shareholders. The amount of money that would be returned to our shareholders was called Equity. All of the company's debt was paid off if all the inserts were to be dissolved. Net asset value can be used as a similar term to honor equity in our corporation in the case of liquidation. After reducing liabilities, net asserts value is the value of all asserts. The answer to shareholders is mainly equities. Under is the Equity amount. 1st is paid in capital and the second is retained earning for the first. The money comes into the business by selling stock in the company. The funds are usually the initial source of equity for stockholders. Sometimes a corporation needs funds for expansion. The other main source of stock is these. Profitability is a reflection of how successful a company has been over time, as Equity, returned earnings are made up of accumulated yearly profits and by the farm less any divided payments, profits are a reflection of how successful a company has been. Here is the complete explanation with answers and concept. Please go through this, please. Thank you for your kind words.

help please 

The primary goal of a publicly-owned firm interested in serving its stockholders should be to

Transcribed Image Text:The primary goal of a publicly-owned firm interested in serving its stockholders should be to: Maximize expected total corporate profit. Maximize expected EPS. Minimize the chances of losses. Maximize shareholder wealth. Maximize expected net income.

The primary goal of a publicly-owned firm interested in serving its stockholders should be to

The primary goal of a publicly-owned firm interested in serving its stockholders should be to

The primary goal of a publicly-owned firm interested in serving its stockholders should be to

Q: How much debt does the company now have, to the nearest thousand dollars? How much equity? What is…

A: Weighted average cost of capital (WACC) refers to the joint cost of company's capital from all the…

Q: Given all else equal, if the yield to maturity of a Treasury bond decreases substantially, generally…

A: The Yield to maturity is the market expected rate of return.  It is an important determinant in bond…

Q: A lease valued at $18,000 requires payments of $1,813 at the beginning of every month. If money is…

A: Click to see the answer

Q: Explain whether the following statement is true: “Duress is an unlawful threat of harm or injury…

A: A void contract is a formal agreement that is voidable from the moment it is signed. Although both…

Q: To purchase s11,700 worth of lab equipment for her business, Jenny made a down payment of s1600 and…

A: This is the case of an amortized loan. An amortized loan is that loan in which the periodic payments…

Q: What is TRUE about the Future Value general growth: I. For a given interest rate: the longer the…

A: The present value (PV) and future value (FV) of money indicate how much its worth has shifted over…

Q: Stock A and Stock B each have an expected return of 12 percent, a beta of 1.2, and a standard…

A: The expected return of Stock A = 12% The expected return of Stock B = 12% The beta of A and B = 1.2…

Q: Find the standard deviation of 12

A: Standard Deviation: It is a measure of risk for an investment or security. Also, in measures, the…

Q: 3. A mortgage balance of $18000 is renewed for the remaining amortization period of 3years at %4…

A: The current value of loan is equal to the present value of all the future monthly installments paid…

Q: An industrial plant bought a generator set for P120, 000. Other expenses including installation…

A: Here the amount to be depreciated will include the installation cost. This is because without the…

Q: 1. Help Prof. White on the following questions he has. Assume $1,000 has been deposited into Prof.…

A: Amount deposited per month us $1,000 Time period is 25 years for deposit and 25 years for…

Q: Suppose Capital One is advertising a 60-month, 5.14% APR motorcycle loan. If you need to borrow…

A: The monthly payment can be calculated with the help of present value of annuity function.

Q: Leveraged Corporation has bonds with a face value of $1,000 at the current price of $1,400. If the…

A: Here, Face value (FV)= $1,000 Current Price (PV) = $1,400 Semiannual Coupon = $60  Time to maturity…

Q: Lindsay is 25 years old and has a new job in web development. She wants to make sure that she is…

A: Data given: Investment amount per year = $ 12,000 N= 30 years Rate = 7% p.a. Required: Amount in her…

Q: The derivatives market allows for

A: Derivatives refer to the contract among various parties whose value depends on a set of assets or a…

Q: 1. a Foxglove Interiors has current assets of $58, fixed assets of $264, current liabilities of $45,…

A: Internal Rate of Return:  Internal Rate of Return (IRR) is the required rate of return at which the…

Q: sells 500 shares of Gold Mine Corp. short at $80 per share. The margin requirement is 50 percent.…

A: When you short sell the stock than you will make profit when prices goes down from your purchase…

Q: Benford Inc. is planning to open a new sporting goods store in a suburban mall. Benford will lease…

A: Equipment and fixtures  $ 3,50,000.00 Net working capital  $ 3,00,000.00 First-year sales  $…

Q: 1.Find the total number of compounding periods and the interest rate per period for the investment.…

A: Period = 7 Years Interest rate = 3% Number of compounding per year = 12

Q: Q5. At 5% annual interest, what is the difference in the present and future value of P100 paid at…

A: When the periodic payment at regular interval is made at end of the period, it is known as ordinary…

Q: Leon has a gross estate estimated at $14.3 million. He is not married but does have two adult…

A: Given in this question is the information regarding Leon whose, Gross estate is  estimated = $14.3…

Q: A company just paid $1.23 in dividends per share, and it has a dividend payout of 38%.  Considering…

A: a) Dividend paid (D) = $1.23 Payout ratio = 38% PE ratio = 8

Q: Von Bora Corporation​ (VBC) is expected to pay a $4.00 dividend at the end of this year. If you…

A: Value of a share of VBS stock = Dividend / (Required return - Growth rate) Dividend = $4.00 Required…

Q: in 8 years (a) What amount should he deposit at the end of each quarter at 6% compounded quarterly…

A: We need to use PMT formula to calculate quarterly payment. PMT =FV*i(1+i)n-1 where FV =future value…

Q: Identify and list 2 methods each for collecting, organising and analysing financial and economic…

A: Qualitative and quantitative data collection methods are used to collect and analyze economic and…

Q: Intro Find the present values of these annuities due. Part 1 What is the present value of $6,000 per…

A: 1) Quarterly payment (Q) = $6000 r = 6% per annum = 1.5% quarterly n = 8 years = 32 quarters

Q: Urgently need Given the following cash flow: $6,500, $4,500, and -$13,000. What is the barrowing…

A: Period Cash flow 1 6500 2 4500 3 -13000

Q: ABC Corp has an average inventory period (production process time + time before sale) of 36 days.…

A: An operating cycle is the amount of time it takes for a firm from getting the production started to…

Q: A concrete pavement on a street would cost P2M and would last for 5 years. Minor maintenance cost is…

A: Click to see the answer

Q: You are required to: 1. Compute the cost of equity for this project 2. Compute the relevant cost of…

A: Weighted average cost of capital (WACC) refers to the combined cost of company's capital from all…

Q: ge can be constructed for $ 20,000 with a life of 30 years, after which it can be rebuilt at the…

A: In Balancehsheet, capitalised cost is the cost which is incurred today and present value of future…

Q: he _____ or _____ interest rate reflects the real rate of return on an investment. a. annual or…

A: The rate of return without considering the impact of compounding and effective is the rate of return…

Q: You are thinking about buying a stock and holding it for 3 years. You expect that the stock will pay…

A: The stock price which is the maximum price to be paid for share consists of dividends and terminal…

Q: What is the price of a Treasury STRIPS with a face value of $100 that matures in 15 years and has a…

A: Formula Price = FV/(1+R)N Where FV - Face value i.e. $100 R - Yield rate i.e. 7.0% N - Period i.e.…

Q: Given all else equal, if the yield to maturity of a Treasury bond decreases substantially, generally…

A: 1) YTM is Inversely related to Price of the bond i,e when YTM raises/falls, price of the bond…

Q: At a certain interest rate compounded semiannually, 5000 pesos will amount to 20 000 pesos after 10…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Illu.1: NIT Ltd. declared dividend at 25% on its re are quoted in the market at Rs.10. You are requi…

A: Dividend is defined as the return that a shareholder gets from the company for the money invested by…

Q: Two mutually exclusive investment projects have the following forecasted cash flows: Year A B 0…

A: The projects or investments are termed to be mutually exclusive when the acceptance given for one…

Q: Puckett Products is planning for $5 million in capital expenditures next year. Puckett’s target…

A: A Residual Dividend Policy is a policy in which the earnings of the company are first used for the…

Q: Apply incremental B/C analysis at an interest rate of 8% per year to determine which alternative…

A: The relation between the cost of the project and the benefits from the project is known as…

Q: Which one of the following statements is correct with respect to policy retention? Group of answer…

A: Insurance is a contract represented by a policy that an individual or group receives financial…

Q: 4. What is the equivalent amount today of an annual deposit of Php200000 for 15 years if money is…

A: Solution : Equivalent amount today of annual deposit means that amount which was represent the…

Q: 1. Why do we study financial management? Enumerate its benefits to the success of a business.

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Use and example to describe how you would analyse past performance, recognise opportunities and plan…

A: Performance analysis is referred as the specialized discipline, which provides the individuals and…

Q: To help purchase his new minivan, Ahmad is taking out a s26,000 amortized loan for 6 years at 5.2%…

A: Given:

Q: Compute the projected after-tax operating cash flow for Steber during the coming year. E

A: Operating Cash Flows: Operating cash flows represent the cash generated by the firm from its normal…

Q: .  You invest some amount today for two years that pays 6% annually. The bank compounds annually. At…

A: Solution:- When some amount is invested somewhere, it earns interest on it. The amount invested…

Q: The method of comparators can be applied using the ratio of operating income to revenue as a basis…

A: Operating Income is an accounting number that measures the amount of operating profit for a company…

Q: You are consider we IRRS that excee RRECT? Assume t

A: Cost of capital refers to the tool which is helpful in analyzing the cost of the capital projects…

Q: nges in Growth and Stock Valuation: Consider a firm that had been priced using a 8 percent growth…

A: P = D/(r-g), P is current price, D is the next expected dividend  g is Expected growth rate in the…

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Recommended textbooks for you

  • The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Essentials Of Investments

    ISBN:9781260013924

    Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

    Publisher:Mcgraw-hill Education,

    The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    FUNDAMENTALS OF CORPORATE FINANCE

    ISBN:9781260013962

    Author:BREALEY

    Publisher:RENT MCG

    The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Financial Management: Theory & Practice

    ISBN:9781337909730

    Author:Brigham

    Publisher:Cengage

  • The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Foundations Of Finance

    ISBN:9780134897264

    Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William

    Publisher:Pearson,

    The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Fundamentals of Financial Management (MindTap Cou...

    ISBN:9781337395250

    Author:Eugene F. Brigham, Joel F. Houston

    Publisher:Cengage Learning

    The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Corporate Finance (The Mcgraw-hill/Irwin Series i...

    ISBN:9780077861759

    Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

    Publisher:McGraw-Hill Education

  • The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Essentials Of Investments

    ISBN:9781260013924

    Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

    Publisher:Mcgraw-hill Education,

    The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    FUNDAMENTALS OF CORPORATE FINANCE

    ISBN:9781260013962

    Author:BREALEY

    Publisher:RENT MCG

    The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Financial Management: Theory & Practice

    ISBN:9781337909730

    Author:Brigham

    Publisher:Cengage

    The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Foundations Of Finance

    ISBN:9780134897264

    Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William

    Publisher:Pearson,

    The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Fundamentals of Financial Management (MindTap Cou...

    ISBN:9781337395250

    Author:Eugene F. Brigham, Joel F. Houston

    Publisher:Cengage Learning

    The primary goal of a publicly-owned firm interested in serving its stockholders should be to

    Corporate Finance (The Mcgraw-hill/Irwin Series i...

    ISBN:9780077861759

    Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

    Publisher:McGraw-Hill Education

    What is the primary goal of a publicly owned firm?

    The main goal of virtually every publicly-owned company has always been to maximize shareholder value by generating as much profit as possible. However, many companies have begun to balance this primary objective with other social and environmental goals that help appease stakeholders and help produce those profits.

    Which of the following is the primary goal of a firm quizlet?

    The primary goal of the business firm is to maximize the wealth of the firm's owners." For a corporation, this statement means that managers should focus on maximizing the wealth of its shareholders or its: Stock price.

    What is the proper goal for management of a firm?

    In other words, the manager's primary goal should be to maximize the value created, which is equal to the net present value of the incremental cash flows generated by the management decisions taken. This might seem to be equal to aiming to increase the profits of the firm.

    Which of the following factors tend to encourage management to act in their stockholders best interests?

    Which of the following factors tend to encourage management to act in their stockholders' best interests? A reasonable compensation package sufficient to attract and retain able managers.