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please i need answer for question 1 to 5 Answer the following questions. Show your woek or briefly state yoar teascens, Credit wall not be
please i need answer for question 1 to 5
Answer the following questions. Show your woek or briefly state yoar teascens, Credit wall not be given for any ansupported answer even if it is correct. 1 What is a finm's intrinsic value? Is it its curreat stock price? Is the stock's true" long-run value more closely related to its intrinsic value or to its cursent price? 2. When is a sock said to be in equilibruam? Why might a sock an any point in time not be in equilibrium? 3 Is it better for a firm's actual stoek price in the market to be under, over, of eqal to its intrissic valuc? Would yout answer be the same from the standpoints of stockholdcrs in general and a CEO who is about to excrcise a millioe dollars in options and then retiret? Explain. E1N3310 Assignment 1 Prot. Be Wang 4. What are the varioes forms of business ofganization? What ate the advantages and disadvantages of each? 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 common stockholders' equity." Later in the report, the following announcements were made. Discuss how SSC's stockholders might view each of these actions and how the actions might affect the stock price. 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. Answer the following questions. Show your woek or briefly state yoar teascens, Credit wall not be given for any ansupported answer even if it is correct. 1 What is a finm's intrinsic value? Is it its curreat stock price? Is the stock's true" long-run value more closely related to its intrinsic value or to its cursent price? 2. When is a sock said to be in equilibruam? Why might a sock an any point in time not be in equilibrium? 3 Is it better for a firm's actual stoek price in the market to be under, over, of eqal to its intrissic valuc? Would yout answer be the same from the standpoints of stockholdcrs in general and a CEO who is about to excrcise a millioe dollars in options and then retiret? Explain. E1N3310 Assignment 1 Prot. Be Wang 4. What are the varioes forms of business ofganization? What ate the advantages and disadvantages of each? 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 common stockholders' equity." Later in the report, the following announcements were made. Discuss how SSC's stockholders might view each of these actions and how the actions might affect the stock price. 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 Step by Step Solution
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