Finance-chap1+chap2

Finance-chap1+chap2 - NGUYEN XUAN THANH ID: 1235735 CLASS:...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
NGUYEN XUAN THANH ID: 1235735 CLASS: WED. ATERNOON Chapter 1 1.1/ If you bought a share of stock, what would you expect to receive, when would you expect to receive it, and would you be certain that your expectations would be met? When I bought a share of stock, I expect that that company will maximize its value in the long term through operations and dividend paid .If I buy a overstated share of stock about its profits in short term, its value will be lowered in the future years. If that company operates well, I will certain to gain profit. 1.7/ If a company’s board of directors wants management to maximize shareholder wealth, should the CEO’s compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm performs? If it is to be based on performance, how should performance be measured? Would it be easier to measure 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? If a company’s board of directors wants management to maximize shareholder wealth, the compensation should depend on how well the firm performs. If it is to be based on performance, performance should be measured by intrinsic value of stocks and outcome operating of company. It would be easier to measure performance by the growth rate in reported profits. It would be better performance measure. Because the growth rate in reported profits is easier to manage through statistic but the growth rate in the stock’s intrinsic value is not certain due to conjecture.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
1.8/ What are the four form of business organization? What are the advantages and disadvantages of each?
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/23/2011 for the course MANAGEMENT 101 taught by Professor Nguyen during the Spring '11 term at Troy.

Page1 / 5

Finance-chap1+chap2 - NGUYEN XUAN THANH ID: 1235735 CLASS:...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online