Explain any three (3) differences between maximising profits and maximising shareholders’ wealth. Justify which one should be the goal of a company.
Q: What other objectives that are important to a public limited company which are in-line with the…
A: A PLC denotes a firm that has issued equity to the general public. The purchasers of the shares are…
Q: In case of a corporation, if the share holders want the dividend payout ratio to increase and…
A: The corporation is regulating through two parties, one with the internal affairs and other with the…
Q: Define the following terms: 'stakeholder'; 'shareholder' and 'stakeholder analysis'. Using a named…
A: Answer:- Stakeholder meaning:- A stakeholder is someone who has an interest in a firm and may…
Q: Which of the following is a disadvantage of the corporate form of business? Select one: O a.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Identifying advantages and disadvantages of a corporation Following is a list of advantages and…
A:
Q: What are the benefits of the corporation in comparison with the partnership and proprietorship…
A: A corporation is a separate legal entity owned by the shareholders, who profit from the company's…
Q: During classroom discussions, you came across multiple views about whether or not corporate dividend…
A: The amount of dividends paid to shareholders by a company, as well as the frequency with which they…
Q: Compare and contrast the three major forms of business organization which are sole proprietorship,…
A: Business form refers to the types of business in which the business deals in. There are multiple…
Q: Which of the following is true about an organizational structure? It is either a sole…
A: Business organization means combination and coordination of different people for the purpose of…
Q: Which of the following is not an advantage of the corporate form of business organization? a)…
A: Introduction:- Corporation is a Legal entity. Shareholders are the owners of the organisation.
Q: 1. What are the potential consequence of a limited partner assumes management responsibilities…
A: An unincorporated commercial entity created by two or more people is known as a partnership. A…
Q: Compare the potential for agency problems in sole proprietorships, partnerships, and corporations.…
A: An agency issue is a contradiction of interest that exists in every connection in which one person…
Q: Discuss the different types of business structures and compare and contrast these different…
A: Introduction: The way activities like task distribution, coordination, and supervision are oriented…
Q: he important objectives to a public limited company in order to maximize s
A: Maximization of shareholders wealth is one of prime objective of public limited company for that…
Q: Evaluate the similarities and differences between trusts and corporations. In an attempt to protect…
A: A legal entity acting as an agent of the individual or entity just to manage the assets and transfer…
Q: Explain common forms of business ownership—sole proprietorship, partnership, and corporation—and…
A: A sole-proprietorship is one that has one owner who has unlimited liability for the business. A…
Q: In which two ways is corporate profits tax similar to the payments to common shareholders (owners)…
A: Shareholders are entitled to share in the company's profits. A corporate tax, also called…
Q: Which of the following statements is false concerning forms of businessorganization? a. A…
A: There are four forms of business organization: Sole proprietorship Partnership firm Joint-stock…
Q: Identifying advantages and disadvantages of a corporation Following is a list of advantages and…
A: Corporation: The form of business entity ,which is incorporated by state law into a separate legal…
Q: Which type of business organization requires huge amount of capital? a. Joint venture b. Corporation…
A: Company means a form of business where the share holder invest money in business in form of shares…
Q: For the three major forms of business, LLC, partnership, and corporation, discuss two advantages and…
A: Limited Liability Company (LLC) is a corporate form of business in which the personal assets of…
Q: Question Two relates to company A and company B. Company A: ‘Our company’s objective is to focus on…
A: Ethics are the moral and principles followed by an individual or company while function the…
Q: 3. Present a general evaluation of the IPO process corporations. in a Explain the process:…
A: 3. a) Stages in IPO process Appointment of an Underwriter or Investment Bank. Registration of the…
Q: Which of the following is the primary element that distinguishes accounting for corporations from…
A: A partnership firm is a constitution wherein two or more individuals come together and join hands to…
Q: Andrea has prepared the following list of statements about corporations.Identify each statement as…
A: Hi, thanks for the question. Question has multiple sub parts, first three sub parts will be answered…
Q: Refer to Chapter 11-1A, page 619: Characteristics of sole proprietorships, partnerships, and…
A: Proprietorship is that form of business which is being held by single person. Partnership is the…
Q: Advantages of the corporate form of business, over other forms, include all of the following except:…
A: A business organization is defined as an entity that is being incorporated with the aim to carry on…
Q: Q: Compare the characteristics of organizational and legal forms of enterprises: Criteria The…
A: Meaning of LLC: - Limited liability companies (LLC) are referred to as entities with corporate…
Q: ot one of the three forms of business organization? Corporations. Partnerships.
A: The right answer is option 5. Investors
Q: following three theories of corporate social responsibility: (i) shareholder value theory, (ii)…
A: These are three management theories 1) Shareholders value theory: shareholders value theory says…
Q: Compare the dividend policy and capital structure of two similar size corporations from the same…
A: Coca-Cola (KO) is a global leader within the nonalcoholic drinks business. In fact, the corporate is…
Q: 1.What are the main advantages of proprietorships, partnerships, and limited liability companies?…
A: Step 1 Advantages of the sole proprietorship Ownership in the case of a sole proprietorship is in…
Q: Question 1 (i) Stakeholder theory is best described as being based on the presumption that the…
A: ANSWERS HAVE BEEN GIVEN IN THE NEXT SHEET
Q: Which of the following is not an advantage of the corporate form of business? a. limited liability…
A: Corporate is a popular form of business for the large and small industry. These types of business…
Q: What should be the primary goal of a corporation?
A: Corporation: It refers to a large company considered as an individual entity and recognized in law.
Question based on the picture attached.
(a) Explain any three (3) differences between maximising profits and maximising shareholders’ wealth. Justify which one should be the goal of a company.
(b) Explain any three (3) costs and benefits of
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The following shows the expected percentage returns on three stocks over the next six years: Stock Percentage Return (%) Year 1 2 3 4 5 6 A 10 5 6 8 12 15 B 8 4 4.8 6.4 9.6 12 C 5 10 12 10 6 6 Required: i Find the expected return for each of the stock. ii Compute the variance and standard deviation for stock A, B and C. Show your working. iii Justify how can you minimize the risk of the above combination of stocks.he last four years of returns for a stock are as shown here: LOADING... . a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Question content area bottom Part 1 a. What is the average annual return? The average return is enter your response here%. (Round to two decimal places.) Part 2 b. What is the variance of the stock's returns? The variance of the returns is enter your response here. (Round to five decimal places.) Part 3 c. What is the standard deviation of the stock's returns? The standard deviation is enter your response here%. (Round to two decimal places.) Time Remaining: 00:26:16 pop-up content starts Data table (Click on the following icon in order…The following shows the expected percentage returns on three stocks over the next six years:Stock Percentage Return (%)Year 1 2 3 4 5 6A 10 5 6 8 12 15B 8 4 4. 80 6.4 9.6 12C 5 10 12 10 6 6 Required:(i) Find the expected return for each of the stock.(ii) Compute the variance and standard deviation for stock A, B and C. Show your working.(iii) Justify how can you minimize the risk of the above combination of stocks. (Must show working method as well)
- The last four years of returns for a stock are as shown here: LOADING... . a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Question content area bottom Part 1 a. What is the average annual return? The average return is enter your response here%. (Round to two decimal places.) Part 2 b. What is the variance of the stock's returns? The variance of the returns is enter your response here. (Round to five decimal places.) Part 3 c. What is the standard deviation of the stock's returns? The standard deviation is enter your response here%. (Round to two decimal places.) figure Year: 1, 2, 3, 4 Return: -4.2%, +27.9%, +11.8%, +3.8%Here are the returns on two stocks. A. Calculate the variance and standard deviation of each stock. Which stock is riskier if held on its own? B. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks C. Is the variance more or less than halfway between the variance of the two Individual stocks?The last four years of returns for a stock are as shown here: E a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. ..... Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 1 2 3 4 Return - 4.3% + 27.9% + 12.3% + 3.6%
- 3. Consider three stocks A, B and C and a market index M with the following prices: Year TO T1 T2 T3 A 85 108 110 125 B 12 14 13 15 C 50 60 70 75 M 1128 1435 1578 1786 The risk-free rate equals 4%. a. Compute the expected return and risk on each stock and the market index. b. Construct the matrix of variances and covariances between these assets. c. Construct the matrix of the correlation coefficients. d. Compute the beta coefficients of these companies and the expected return at equilibrium. e. Construct the minimum risk portfolio P1 composed of A and C. Compute the expected return and risk on this portfolio. f. Construct a portfolio P2 composed of A, B and C in proportions of 20%, 30% and 50%. Compute the expected return and risk on this portfolio. What is the contribution of each security to the return and risk pf this portfolio? g. Construct an equally weighted portfolio P3 composed of A, B, C and the risk-free rate. Compute the beta coefficient and position this portfolio with…Stock A has the following returns over the past periods. Calculate the downside risk measured by semi-variance? (answer with 4 decimal spaces) 0.0057 -0.0255 0.0621 -0.0879 -0.0983 0.0813 0.0356 -0.0015 -0.0307 0.0427 0.0297 0.0192The last four years of returns for a stock are as shown here: a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format.
- What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Year 1 2 3 4 Return (%) Year1: -4.1% Year2: 27.6% Year 3: 12.3% Year 4: 3.6%Question 3 The following shows the expected percentage returns on three stocks over the next six years: Based on the pic attached, i. Find the expected return for each of the stock. ii. Compute the variance and standard deviation for stock A, B and C. Show your working. iii. Justify how can you minimize the risk of the above combination of stocks.Assume that you run a regression on the raw returns of the stock of Company J against the raw returns of the market and find an intercept of 1.324 percent and a beta of 2.36. If the risk-free rate is 2.64 percent, and using the concept of Jensen's Alpha, then determine by how much this stock beat the market. Answer in decimal format. For example, if you answer is 3.33%, enter "0.0333"