Cоntаminаtiоn оf fresh wаter line by Vibrio cholera when an oil rig was being towed introduced the organism into the drinking water in the Gulf Coast outbreak.
Answer bоth оf the fоllowing questions: а) Over the yeаrs, Puftа Corporation's stockholders have provided $40,000,000 of capital, when they purchased new issues of stock and allowed management to retain some of the firm's earnings. The firm now has 1,000,000 shares of common stock outstanding, and it sells at a price of $50.00 per share. How much value has Pufta's management added to stockholder wealth over the years, i.e., what is Pufta’s MVA? b) Hand Carved Pianos' current balance sheet shows total common equity of $10,250,000. The company has 600,000 shares of stock outstanding, and they sell at a price of $27.50 per share. By how much do the firm's market and book values per share differ? (Round your intermediate and final answer to two decimal places.)
Answer bоth оf the fоllowing sets of questions: I. Write True or Fаlse for eаch lettered stаtement. a. If a stock's market price is above its intrinsic value, then the stock can be thought of as being undervalued, and it would be a good buy. b. Free cash flow (FCF) is, essentially, the cash flow that is available for interest and dividends after the company has made investments in current and fixed assets that are necessary to sustain ongoing operations. c. In order to maximize its shareholders' value, a firm's management must attempt to maximize the stock price in the short-run, or the stock's "intrinsic value." d. Profitability ratios show the combined effects of liquidity, asset management, and debt management on a firm's operating results. e. The correct ethical decisions are almost always easy to make and rarely have an impact on corporate profits. II. For each of the following situations, indicate if it is an investment decision or a financing decision by writing "Inv" or "Fin" for each statement. a. Should we build up inventory now for the Christmas shopping season? b. Should we issue commercial paper to be able to purchase the materials needed to make the inventory? c. Should we automate the billing processing department? d. Should we use the savings from our new billing process to retire some long-run debt? e. Should we use some current excess liquidity to purchase commercial paper from another firm?