Answer:
The answer is letter B
Explanation:
The category is structure
Answer:
Value of Investment= Principal (1+Rate of return)^Number of periods
For the first investment the principal is 7,500, the rate of return is 11.5% and the number of periods are 5 so the value of the investment will be
7,500 (1+0.115)^5=12,925
For the second investment the principal is 5,000, the rate of return is 11.5 and the number of periods are 3 as the 5,000 is invested two years from today.
5,000*(1+0.115)^3=6,931
Total value of investments = 12,925 +6,931 = $19,856
Answer:
The goal of the managers of a publicly owned company should be to maximize the firm's <u>INTRINSIC VALUE</u>.
The board of directors' and upper management's main goal is to maximize the corporation's value in order to maximize stockholders' wealth.
An analyst with a leading investment bank tracks the stock of Mandalays Inc. According to her estimations, the value of Mandalays Inc.'s stock should be $37.32 per share, but Mandalays Inc.'s stock is trading at $45.59 per share on the New York Stock Exchange (NYSE). Considering the analyst's expectations, the stock is currently:
If the analyst considers that the stock's intrinsic price is $37.32 and the market price is $45.59, this means that currently the stock is overvalued.
