Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The owners of a corporation are the the shareholders' wealth by The primary goal of the corporate management team is over the long run. the

image text in transcribed
image text in transcribed
The owners of a corporation are the the shareholders' wealth by The primary goal of the corporate management team is over the long run. the Krit Corp. is a US manufacturing company based in the Midwest. As an investor, Wilson bought 100 shares of stock in Krit Corp. The stock price of Krit Corp. is currently trading at $30.00 per share. Wilson's total wealth in Krit Corp. is: O $3,000.00 $5,030.00 $333.33 O $100.00 If the stock price of Kit Corp. increases in the next two years, Wilson's wealth in Krit Corp will 1. Capital allocation process The capital allocation process involves the transfer of capital among different entities that include individuals, small businesses, banks, financial intermediaries, companies, mutual funds, and other market participants. In a developed market economy, capital flows freely between entities that want to supply capital to those who want it. This flow of capital can be dassified in three ways. In the table below, identify the nature of capital transfer given in the scenario with its appropriate classification: Indirect Transfers through Investment Banks Direct Transfers Indirect Transfers through Financial Intermediaries Scenario Steve's grandfather loans him $30,000 to start a small coffee shop in the East Village in Manhattan. SO A small startup firm has each of the partners contribute $50,000 in capital to help the company make payroll for the next three months. o O W2 Corp. needs capital to finance a new product line. It borrows money in the form of long-term bonds underwritten by an investment bank. O Elliot invests $25,000 by purchasing 1,000 shares of an emerging markets mutual fund. This mutual fund invests in companies in Brazil, India, and China. He bought the mutual fund from the mutual fund company

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions