Your broker concluded that if they were well-managed they

Assignment Help Finance Basics
Reference no: EM13574567

In a recent discussion with you, your broker commented that well-managed firms are not necessarily more profitable than firms with average management. To convince you of this, she presented you with evidence from a recent study conducted by the firm for which she works. The study examined the returns on 17 small manufacturing firms that, eight years earlier, an industry magazine had listed as the best-managed small manufacturers in the country. In the eight years since the publication of that issue of the magazine, the 17 firms have not earned more than the market. Your broker concluded that if they were well-managed, they should have produced better-than-average returns. Do you agree with your broker?

Reference no: EM13574567

Questions Cloud

Using before-tax information and the net present value : fresno manufacturing company specializes in the production of precision tools. management is in the process of
Carnival corporation has recently placed into service some : carnival corporation has recently placed into service some of the largest cruise ships in the world. one of these ships
What will be the price of the stock on the ex-dividend date : the mann company belongs to a risk class for which the appropriate discount rate is 10 percent. mann currently has
Complete the performance report that will help ms jaskis : kam mammi supervisor of the kammi corporations machining department was visibly upset after being reprimanded for her
Your broker concluded that if they were well-managed they : in a recent discussion with you your broker commented that well-managed firms are not necessarily more profitable than
Your father is about to retire his firm has given him the : present value. your father is about to retire. his firm has given him the option of retiring with a lump sum of 20000
Following are the amounts of the assets and liabilities of : following are the amounts of the assets and liabilities of oriental travel agency at december 31 2014 the end of the
Teradene corporation purchased land as a factory site and : teradene corporation purchased land as a factory site and contracted with maxtor construction to construct a factory.
The brandilyn toy company manufactures a line of dolls and : the brandilyn toy company manufactures a line of dolls and a doll dress sewing kit. demand for the dolls is increasing

Reviews

Write a Review

Finance Basics Questions & Answers

  Use the internet to research two publically held health

use the internet to research two publically held health care organizations in your state that you believe would benefit

  Decision making models and preferred stock

Given two projects, what are the decision models that you can use to make a decision as to which project you should accept? Which is the better?

  Finding the effective interest rate

Mime Theatrical Supply is in the process of negotiating a line of credit with two local banks. The prime rate is currently 8 percent. The terms follow: Calculate the effective interest rate of both banks.

  What is the cross-rate in terms of yen per pound

Assume that U.S. six-month Treasury bills have an annualized rate of 6.2% while default-free Japanese bonds that mature in six months have an annualized rate of 5.0% and that interest rate parity holds.

  Important question on funds

Honda Motor Company is going to pursue the list of items below. Describe fully how Honda can make the ideas work. Be creative. Describe where the funds will come from to fund the items given below

  Calculate liquid ratio from the

calculate liquid ratio from the followingnbsprscash15000bills receivable20000stock22000creditors17000outstanding

  What will the investment be worth at the end of five years

If you place $50 in a savings account with an interest rate of 7% compounded weekly, what will the investment be worth at the end of five years ( round to the nearest dollar)?

  Tis enables db to increase its profitability by 3000 per

a company must decide if it should move division da to a new location. if division da moves it will be housed in a new

  For the cash flows in the previous problem suppose the firm

for the cash flows in the previous problem suppose the firm uses the npv decision rule. at a required return of 11

  A small savings bank operating in dark star

The Dark Star Savings Bank is a small savings bank operating in Dark Star

  Calculate the dollar sales volume

Allison Radios manufactures a finish line of radio and communication equipment for law enforcement agencies. The average selling price of its finished product is $180 each unit.

  Which of the approaches-future value or present value

Which of the approaches-future value or present value- do financial managers rely on most often for decision making? Why?

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