Write down what are the disadvantages of shareholders equity?

Q: How are common shares different from preferred shares? Cite advantages and disadvantages.

A: Share can be defined as unit of ownership in a company. Investors invests in a company by purchasing…

Q: What do you think is the main issue of conflict between the stockholders and managers?

A: There are various conflicts of interest that can impact manager's decisions to act in shareholders'…

Q: Describe about the primitive rights of shareholders?

A: Primitive rights of shareholders: Primitive rights are a contractual clause giving a shareholder the…

Q: What are the elements of uncertainty for internal shareholders that remain or are introduced when…

A: elements of uncertainty for internal shareholders  are discussed below

Q: How does the availability and cost of outside capital affect dividend policy?

A: The question is based on the concept of dividend policy and factors of dividend policy.

Q: What are the major internal controls over owners’ equity?

A: Stockholders’ equity is the claims of owners on a company’s resources, after the liabilities are…

Q: Do you think the partial equity method is the best choice of methods to use for every companies…

A: When a company invests in another corporation, it uses the partial equity technique to account for…

Q: risk implications of improving net profit margin to increase Return on Equity?

A: Net profit margin is the percentage of net profit to sales revenue

Q: What conflicts of interest can arise between managers and stockholders?

A: Stockholders also knowns as shareholder is an individual, firm, or institution which owns at least…

Q: What are some of the advantages of holding companies? Identify adisadvantage.

A: The advantages of holding company: Risk reduction: Large companies favor a structure of holding…

Q: What do you see as some of the possible problems if shareholder value is seen as a strategy (and not…

A: Strategy refers to the financial approach for the planning of the functions that are based on a…

Q: What are the rights and privileges of Common Stockholders?

A: Common Stockholders: Common stockholder can be defined as someone who has purchased common shares of…

Q: Why is it that the goal of financial management is maximization of shareholders’ wealth rather than…

A: Financial management is defined as the planning, organizing, directing, and also the controlling of…

Q: What types of risks should shareholder wealth-maximizing managers seek to offset in a firm they are…

A: Explanation:- The principle of maximizing shareholder value (SWM) states that the goal of every…

Q: What are some actions stockholders can take to ensure that management’s interests and the interests…

A: Some actions that stockholders can take to guarantee that interests of stockholders and management…

Q: How does the use of financial leverage affect current stockholders’control position?

A: Financial leverage refers to the extent of debt in the capital structure. A highly leveraged firm is…

Q: What are the indicators of shareholder welfare?

A: Any person or company or any financial institute that holds the share of the company is referred to…

Q: equity does not represent the market value of the company

A: There are various methods of arriving at a fair valuation of a company. Each of the methods give us…

Q: What are holding companies? What are theiradvantages and disadvantages?

A: Holding companies: Holding company is a corporation that does not carried out any processes,…

Q: Describe disadvantages of corporation.

A: Corporation:   Business concerns which have a separate legal entity; and are owned by shareholders,…

Q: What are some actions stockholders can take to ensure that management’s interests and the interests…

A: Some actions that stockholders can take to guarantee that interests of stockholders and management…

Q: What are the advantages of bringing IPO  into company?

A: To run the business, the firm needs funds for a long time. To arrange the funds, firms issue various…

Q: What are the fundamental rights of a common stockholder?

A: Introduction: A stockholder is also referred to as a shareholder or an individual who owns at least…

Q: Explain the difference between the Stable Dividend Policy and the Residual Dividend Policy?

A: A company's dividend distribution policy determines the number of dividends and the frequency with…

Q: What is business risk? What factors influence afirm’s business risk?

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: What are the best two measures for the profitability of firms that are not publicly traded?

A: Profitability, rate of return, as well as the pre-tax income are all metrics that would be used to…

Q: How does the use of financial leverage affect stockholders’ control position?

A: SOLUTION:- By raising capital through debt, the owners maintain control of the firm with limited…

Q: What are the advantages and disadvantages of higher dividends to investors?

A: Dividend can be defined as the division of profits accumulated by the company to its shareholders in…

Q: what is a shareholder value

A: An investor, likewise alluded to as an investor, is an individual, organization, or foundation that…

Q: Which company stock is better to invest and why

A: Answer:-  Stock meaning:- A stock is a broad term that generally refers to any company's ownership…

Q: What is return on shareholder's equity?

A: The return on shareholders' equity can be determined by using the following formula: ROE = Earnings…

Q: What goals might be pursued by managers instead of maximization of shareholder wealth?

A: The shareholder wealth is the company revenue. The shareholder wealth is increased by increasing of…

Q: Explain and discuss the preemptive right of common stockholders. Is this fair? Why or why not?

A: Common stockholders are actually the real owners of the corporation or company. Preemptive right is…

Q: In what situations should managers consider the use of stock splits?

A: stock splits: It is the situation of increasing the number of shares by dividing one share into tow…

Q: What is meant by the goal of maximization of shareholder wealth?

A: Shareholders are the owners of a company and they are the people who hold shares of the business.…

Q: How do we look to shareholders?

A: Balanced scorecard: It is a tool to measure the performance that relates a company’s strategy to…