Discuss why General Motors’ stockholders probably didn’t suffer as a result of the reported loss. What do you think was the basis for our conclusion?
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Discuss why General Motors’ stockholders probably didn’t suffer as a result of the reported loss. What do you think was the basis for our conclusion?
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- If you are in financial hardship, explain what it means. If we suppose that financial hardship occurs, explain how and why financial distress would make a company's stock more hazardous.Can you identify a possible explanation for the company’s declining profits? If so, what is it?Which of the following factors reflect pure market risk for a given corporation?a. Increased short-term interest rates.b. Fire in the corporate warehouse.c. Increased insurance costs.d. Death of the CEO.e. Increased labor costs.
- Neither the banks nor the central banks have assisted businesses during the pandemic, they all seem to be concerned only with profits.Discuss this statement in the light of the role of regulators of financial institutions.Write a brief description of the logic behind the development of the time value formula for annuities. Why does stock-based compensation create a moral hazard for executives?From the computation (A), assuming that there is no pandemic, How do you see ABC, INC.? Is it profitable? Good for long term investment? Short term investment? Is the company still existing?
- Which of the following is not a reason a company would be willing to accept new business at a loss? A.) The company has the expectation that certain customers can influence other potential customers. B.) The company has the expectation that it will make up for it in later years and has the expectation that certain customers can influence other potential customers. C.) The company has the expectation that its estimates will prove incorrect and that the business will result in a profit. D.) The company has the expectation that it will make up for it in later years.What are the options available to a company in the event of a financial failure?6) Which of the following is NOT a diversifiable risk?A) the risk that oil prices rise, increasing production costsB) the risk that the CEO is killed in a plane crashC) the risk of a key employee being hired away by a competitorD) the risk of a product liability lawsuit
- Explain in full detail why the following statement is false: "Financial managers should not focus on the present stock value of the company. Instead, they should focus on the profitability of the company. Doing so will result in increasing the value of the stock.Can the retiring strategy of a firm jeopardize its profitability? Explain and provide examples of corpora (if any) where this has happened. Please help me answer this question. I'll upvote for you. Thanks in advance.
