Essay Fin 534

Problem 1.9. A stock when it is first issued provides funds for a company. Is the same true of an exchangetraded stock option? Discuss. An exchange-traded stock option provides no funds for the company. It is a

b) The decision to invest in projects increases the shareholders value of the company. This is consistent with the growth and from the NPV criteria, positive NPV of projects increases the shareholder's value.

Spiritual: The pre-stage is infancy before & language and conceptual thought. Sometime between two and seven a child enters intuitive/projective faith marked by the rise of imagination, but lacks logic for questioning perceptions or fantasies. Next, children progress into mythic/literal faith. Here the child develops a

both a and b (Yes.  The corporate structure provides for limited liability and ease of transferring ownership.)

Think about how you have used technology in science and other classes in the past. Describe 5 ways you have used technology in classes (2 must be from science). From your experiences and research, does educational technology improve teaching and learning in the classroom? Support your answer with at least 2 resources

When a company decides to pay dividends, it has to be careful on how much it will be given to the shareholders. It is of no use to pay shareholders dividends

It’s better for a firms actual stock price to be equal to its intrinsic value because then there would be stability and no reason to change the stock’s price. As a stockholder, I would prefer the stock price to be under the intrinsic value because that means at any point in time the current price would not have to be maximized. But as a CEO with a million dollars, I would prefer the stock price in the market to be over the intrinsic value because it’s the current price I am interested in.

7. A company pays $600,000 for 30% of the common stock of X, Inc. In the first year, X,

Dividends should be made cumulative and issuable upon a liquidation event or an IPO. Such dividends may be converted, if the holder desires, to common shares. This will encourage management to seek a quicker exit.

Estimate and compare the returns and variability (i.e. annual standard deviation over the past five years) of Reynolds and Hasbro with that of the S&P 500 Index. Which stock appears to be riskiest?

7. Which of the following must be true if a firm is experiencing economies of scale?

Question 10- Why is Martin pushing real options valuation as an alternative to DCF analysis?

Based on the financing needs, as above dividends would be additional stretch on company finances

Johnson & Johnson and P & G stocks had the least volatility than the other individual stocks. But, regardless of Johnson & Johnson and P & G

Which of (a), (b), (c) or (d) is correct in relation to the above argument?