Can our goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior? In particular, do you think subjects like customer and employee safety, the environment, and the general good of society fit in this framework, or are they essentially ignored? Try to think of some specific scenarios to illustrate your answer.
Answer to relevant QuestionsWhy is it that the revenue and cost figures shown on a standard income statement may not be representative of the actual cash inflows and outflows that occurred during the period? The Stancil Corporation provided the following current information: Proceeds from long-term borrowing ............ $12,000 Proceeds from the sale of common stock .......... 3,000 Purchases of fixed assets ...During 2010, Raines Umbrella Corp. had sales of $835,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $620,000, $120,000, and $85,000, respectively. In addition, the company had an ...Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Romulans today for $5.2 million. Klingon's current balance sheet shows net fixed assets of $4.5 ...The Burk Company has a ratio of long-term debt to long-term debt plus equity of 0.40 and a current ratio of 1.25. Current liabilities are $1,075, sales are $6,180, profit margin is 8.5 percent, and ROE is 16.25 percent. What ...
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