About to southern semiconductor corporation

Reference no: EM131035548

The president of Southern Semiconductor Corporation (SSC) made this statement in the company's annual report: "SSC's primary goal is to increase the value of our common stockholders' equity." Later in the report, the following announcements were made:

a. The company contributed $1.5 million to the symphony orchestra in Birmingham, Alabama, its headquarters city

b. The company is spending $500 million to open a new plant and expand operations in China. No profits will be produced by the Chinese operation for 4 years, so earnings will be depressed during this period versus what they would have been had the decision been made not to expand in China

c. The company holds about half of its assets in the form of U.S. Treasury bonds, and it keeps these funds available for use in emergencies. In the future, though, SSC plans to shift its emergency funds from Treasury bonds to common stocks
Discuss how SSC's stockholders might view each of these actions and how the actions might affect the stock price

Reference no: EM131035548

Questions Cloud

Find the contact potential from the diagram : Draw an equilibrium band diagram for this junction, including numerical values for the Fermi level position relative to the intrinsic level on each side of the junction. Find the contact potential from the diagram and compare with the analytical e..

According to basic ethical principles of scarce allocation : According to the four basic ethical principles of scarce allocation, which patient would you prioritize for treatment?

Prepare the journal entry to record the interest at june : Prepare the journal entry to record the interest at June 30, 2010. Prepare the journal entry to record the interest on December 31, 2010.

Determine distance of the first voltage minimum from the l : the distance of the first voltage minimum from the l

About to southern semiconductor corporation : The president of Southern Semiconductor Corporation (SSC) made this statement in the company's annual report: "SSC's primary goal is to increase the value of our common stockholders' equity." Later in the report, the following announcements were m..

Globalization is an important strategy for many firms : Globalization is an important strategy for many firms large or small. Yet, actual implementation varies according to the company, industry and the countries it wishes to enter. Explain how Apple’s globalization strategy for the i-Phone illustrates th..

How its globalization effort has succeeded or failed : Discuss Cemex’s primary motivation in entering markets outside Mexico. Then explain why its approach has emphasized local acquisitions and how its globalization effort has succeeded or failed

Ensure that managements and stockholders interests : What are some actions that stockholders can take to ensure that management's and stockholders' interests are aligned?

For a brick-and-click company to add e-commerce : For a brick-and-click company to add e-commerce to its marketing mix, the firm must be aware that it creates the threat of a backlash from its channel partners. The question remains: How to sell both through intermediaries and online? What strategies..

User Account

All Pages