How would respond to the policy

Assignment Help Managerial Accounting
Reference no: EM132530152

Assume that the president of Freeman Industries Inc. made the following statement in the Annual Report to Shareholders:

"The founding family and majority shareholders of the company do not believe in using debt to finance future growth. The founding family learned from hard experience during Prohibition and the Great Depression that debt can cause loss of flexibility and eventual loss of corporate control. The company will not place itself at such risk. As such, all future growth will be financed either by stock sales to the public or by internally generated resources."

Question 1: As a public shareholder of this company, how would you respond to this policy?

Reference no: EM132530152

Questions Cloud

Identify the aspects of your hypothetical program : Imagine it is your task to calculate ROI for a hypothetical training program. Determine one key element that would factor into your calculation of ROI.
Reflecting on kant theory why would lying be wrong : As we read, John Stuart Mill says that it is better to be a human being dissatisfied then a pig satisfied. Do you agree or disagree with Mill? Why or why not?
Identify the two key assertions at risk : Identify the two key assertions at risk for each of the two key account balances Cash and account receivable. Justify your selection of these assertions
What criteria or needs determine the type of health program : What criteria or needs determine the type of health program or initiative that will be implemented? How might health care administrators identify the needs.
How would respond to the policy : Assume that the president of Freeman Industries Inc. As a public shareholder of this company, how would you respond to this policy?
Do you think that he right about the ability to suffer : Do you think that he's right about the ability to suffer as what we ought to look at when we're thinking about whether someone/something counts morally?
What is the effect on the total equity at the end : On Jan. 2005, AA company granted total $100,000 (fair value) of stock options to the employee. What is the effect on the total equity at the end
Perform differential analysis : Perform differential analysis. Assume making the rims internally is Alternative 1, and buying the rims from an outside manufacturer is Alternative
Revise your attitude toward certain behavior : Ponder the fact that psychological time is an extreme variable and review the boxed material, "What Time Is It?"). Have you felt the impact of the fact that

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How are gross profit and net income changing as dollar value

Using Vertical Analysis calculate net profit margin (use the last "net income" line on the statement) How are gross profit and net income changing, as dollar

  Make a record or journalize all transactions

On Jan 1, 2017 PT Bro had 50,000 shares, $5 par value per share, During the year, the following transactions ocurred. Make Record or journalize all transaction.

  Demonstrate the variable and fixed cost elements

Demonstrate the variable and fixed cost elements using the high low method. Westerville Corp. has collected the following data concerning

  Prepare the companys production budget for third quarter

Prepare the companys production budget for the third quarter of this year (the months of July, August and September) in good form. Include a column for each month and a total column for the entire quarter.

  What zees equivalent unit for conversion cost would be

76000 units were started during the period, and 50,000 units were 20% completed at the end of the period. Zees equivalent unit for conversion cost would be?

  What is the maximum annual profit that the company can earn

What is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit

  Show the budget by month and in total

Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000?

  Satu company, a merchandiser recently completed

1.Satu Company, a merchandiser, recently completed its 2013 operations. For the year, (1) all sales are credit sales,

  Prepare schedule of cash receipts for november

Prepare schedule of cash receipts for November. Collections of credit sales are received. Dawn Company reports the following sales forecast

  Job descriptions and job functions

What would you include in a job description for a new cashier? How about a sales person? What is included on your job description? Are there functions you perform that are not in your job description?

  Intro to management accounting please make sure the

please make sure the assignment is according to the required criteria and complete in all respects

  Prepare Company financial statements

Prepare Company financial statements

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd