Q#1. apple, inc. (aapl) announced in 2013 a 7-for-1 stock split. similarly, many other publicly traded companies have announced stocks splits. most stock holders as well as some analysts and traders believe that a stock split would definitely benefit current shareholders and raise the firm’s overall market value. you read in chapter 14 that, in theory, a 7: 1 split would increase the number of outstanding shares seven fold and cut down the post-split stock price to 1/7 of pre-split price, thus leaving apple's shareholders' wealth unchanged. this theory asserts that stock prices should increase only when a firm generates more earnings (cash flows) which will raise earnings per share. but stock splits do not generate any additional earnings (cash flows) for the firm. so you are puzzled why some shareholders, traders, and analysts adamantly believe that stock splits benefit shareholders. explain whether or not stock splits in general would benefit a firm's current shareholders with at least a 5-year investment (holding) horizon. you would want to use your understanding of chapter 14 stock split material, especially the signaling aspects of stock splits, optimal stock price range theory, and past empirical evidence in your explanation. limit your answers to no more than ten (10) sentences.
Answers: 3
Business, 21.06.2019 19:40, farrellandnandi
Which of the following is false regarding the links between jit and quality? a. jit increases the cost of obtaining good quality. b. as quality improves, fewer inventory buffers are needed; in turn, jit performs better. c. jit reduces the number of potential sources of error by shrinking queues and lead times. d. inventory hides bad quality; jit immediately exposes it. e. if consistent quality exists, jit allows firms to reduce all costs associated with inventory.
Answers: 3
Business, 22.06.2019 10:00, makennskyee1198
Carrie works at a canned food production factory. the government wanted to give a boost to the salt industry, so it lined up numerous subsidies and tax exemptions for the sector. this lead to a decrease in production costs. this also meant that consumers could access canned foods at a lower price, which lead to an increase in demand for the product. which kind of economic system is carrie’s company dealing with? carrie’s company is dealing with a/an economy.
Answers: 2
Business, 22.06.2019 10:40, emojigirl5754
Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable
Answers: 2
Q#1. apple, inc. (aapl) announced in 2013 a 7-for-1 stock split. similarly, many other publicly trad...
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