Discuss how ssc stockholders will view each

Reference no: EM13285648

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 not been made to expand in that marked.
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 bond to common stocks.

Discuss how SSC's stockholders will view each of these actions, and how they will affect the stock price.

Reference no: EM13285648

Questions Cloud

What mass of gold is contained in the rock : A prospector finds a solid rock composed of granite (density = 2650 kg/m3) and gold, What mass of gold is contained in the rock

Find the value of the current through the capacitor : The voltage across the capacitor, vc(t), will reach some negative constant value after a long time. If the value of the capacitor is 39 microfarads, and if iC(t) is the same as in question 3 above, find the voltage across the capacitor at t = 7 sec..

How much higher or lower is the effective annual rate : How much higher or lower is the effective annual rate charged by Midwest versus the rate charged by Riverside?

Explain the limiting reactant in the original salt mixture : Because of porosity of the filter paper some of the CaC2O4*H2O precipitate passes through the filter paper. Will the reported percent of the limiting reactant in the original salt mixture be reported too high or too low

Discuss how ssc stockholders will view each : Discuss how SSC's stockholders will view each of these actions, and how they will affect the stock price.

Determine the internal resistance of the battery : A 5V battery, when connected to a 100 ohm load, supplies the load with 40mA. a) determine the internal resistance of the battery. b)what is the battery output under no load conditions under full load conditions c) find the percent voltage regulati..

Obtain a relation for the drag force : The drag force on an object depends on the dimensionless drag coefficient, the density of air, the object velocity, and the frontal area of the object. By only considering units obtain a relation for the drag force

Determinate the decision variables and objective function : The courses offered are usually of two types: practical, such as woodworking, word processing, and car maintenance; and humanistic, such as history, music, and fine arts. To satisfy the demands of the community, at least 10 courses of each type mu..

Explain what mass of silver chloride would be formed : What mass of silver chloride would be formed from mixing 250 mL of 0.240 M MgCl2 solution with 200 mL of 0.380 M AgNO3 solution? AgCl FWT = 143.32 g/mol

User Account

All Pages