need question 9

performance, how should perlilai performance by the growth rate in reported profits or the growth rate in the stock's intrinsic value? Which would be the better performance measure? Why? What are the various forms of business organization? What are the advantages and disadvantages of each? Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action increases a firm's stock price from a current level of S20 to $25 in 6 months and then to $30 in 5 years, but another action keeps the stock at $20 for several years but then increases it to $40 in 5 years, which action would be better? Think of some specific corporate actions that have these general tendencies. Vhat are some actions that stockholders can take to ensure that management's and stockholders' interests are aligned? 1-7 e W The president of Southern Semiconductor Corporation (SSC) made this statement in the company's annual report: "SSC's primary goal is to increase the value of our com stockholders' equity." Later in the report, the following announcements were made: a. The company contributed $1.5 million to the symphony orchestra in Birmingham Alabama, its headquarters city b. The company is spending $500 million to open a new plant and expand operations in China. No profits will be produced by the Chinese operation for 4 years, so earnings will be depressed during this period versus what they would have been had the decision been made not to expand in China. c. The company holds about half of its assets in the form of U.S. Treasury bonds, and it keeps these funds available for use in emergencies. In the future, though, SSC plans to shift its emergency funds from Treasury bonds to common stocks. Discuss how SSC's stockholders might view each of these actions and how the actions might affect the stock price. 1-10 Investors on hare of stock they hold. TIAA-CREF is holds many shares s acted as a ed a notice