How is the wealth of a firm’s shareholders/owners measured by? Group of answer choices a) Profit of the firm b) Number of shareholders in the firm c) Amount of money in the bank d) Share price of the firm
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- What is the value for 'Returned on Invested Capital' of the firm below (in the picture) based on the Statement of Financial Position and Statement of Profit or Loss?The cost of equity is ________. Group of answer choices A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnoverWhich of the following best describes the market capitalization of a company? Select one: a. it represents the total value of the company b. it is the product of the numbers of shares and the price per share c. it represents the total wealth associated with the company's earnings d. it is the most someone would pay for the stock
- which one is correct please confirm? QUESTION 2 Dividend policy can affect the value of the firm for which of the following reasons? a. Personal taxes b. Flotation costs c. Shareholder transaction costs d. All of these are correctWhich of the following is the definition of Capital Structure"? * the amount of dividends a firm pays. the amount of capital in the firm. the mix of debt and equity used to finance the firm's assets. how much cash the firm holds. the way a firm invests its assets."Shareholder wealth" in a firm is represented by: 1 O the market price per share of the firm's common stock. the outstanding capital of the firm. O the amount of salary paid to its employees. O the book value of the firm's assets less the book value of its liabilities.
- The firm's capital structure refers to: Select one: a. the amount of dividends a firm pays b. None of the option c. how much cash the firm holds d. the amount of capital in the firm e. the way a firm invests its assets.1. Dividend is a financing decision as well as distribution of earnings. Do you agree with the statement? Justify howdoes dividend affect the value of the firm? 2. Compare the effect of distribution of dividends and retained earnings on the value of the firm.What are the distributions to the stockholders by a firm called? A. retained earningsB. net incomeC. dividendsD. capital payments
- Which of the following do/does NOT describe how shareholders accrue investment returns (Select all that apply)? Status and power Cash dividends Wage from invested companies Increased value of their stockWhat is the primary purpose of computing the cost of capital? a. To determine the market value of the company's shares b. To assess the company's liquidity position c. To evaluate the profitability of investment projects d. To compare the company's performance with industry peersThe cost of equity is ________. a.equal to the amount of asset turnover b.the interest associated with debt c.the weighted average cost of capital d.the rate of return required by investors to incentivize them to invest in a company