Business, 23.01.2020 00:31, Ashwaf23474

The primary objective of the corporate management team is to maximize shareholder wealth. the company's board of directors and the shareholders evaluate and review managerial actions based on the growth in the value of the firm.
based on your understanding of what determines a firm's value, review the following:
what does the value of a firm depend on?
option a the ability to generate cash flow that is available to distribute to the company's investors, including creditors and stockholders
option b the ability to generate cash flow that is available to distribute to the company's stockholders only
which of the options is most accurate?
when determining the value of a firm, which of the following statements is true?
-a financial asset is considered to have value only if it is acquired at its market value.
-a financial asset is considered to have value only if it has the ability to generate positive cash flows.
-a financial asset is considered to have value only if it is acquired at its book price.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 13:00, notorius315

The green revolution is a scientific breakthrough that improved seeds for basic crops. how did the green revolution impact the supply of basic crops such as wheat and corn? the supply of wheat and corn increased. there was no impact on the supply of basic crops. the supply of basic crops did not change, but the quantity supplied of basic crops increased. the supply of wheat and corn decreased.

Answers: 3

continue

Business, 22.06.2019 17:10, mikailah0988

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)

Answers: 3

continue

Business, 22.06.2019 18:30, miller5452

Amanufacturer has paid an engineering firm $200,000 to design a new plant, and it will cost another $2 million to build the plant. in the meantime, however, the manufacturer has learned of a foreign company that offers to build an equivalent plant for $2,100,000. what should the manufacturer do?

Answers: 1

continue

Business, 22.06.2019 19:40, silasjob09

The martinez legal firm (mlf) recently acquired a smaller competitor, miller and associates, which specializes in issues not previously covered by mlf, such as land use and intellectual property cases. given the increase in the firm's size and complexity, it is likely that its internal transaction costs willa. decrease. b. increase. c. become external transaction costs. d. be eliminated.

Answers: 3

continue

Do you know the correct answer?

The primary objective of the corporate management team is to maximize shareholder wealth. the compan...