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The 'value of a firm' is connected with profit maximization. It is the present value of the firm's current profit and the future profit. It determines the value accurately.
What else can I help you with?
The sum of the value added by all firms equals total?
The market value of the final product
How firms can learn about net present value NPV from the stock market?
by using the basic net present value
What is One of the best ways for firms to enhance customer satisfaction is by providing?
Greater Value on Products
Do successful firms generate long term profits by delivering unsurpassed value to their customers?
the answer is True
How are cash flows and the firms stock price related?
In an ideal world, the value placed on a shares value is the current value of all future dividends issues. The greater a firms cash flow, the higher you would expect the dividend to be. Not living in the real world, and not having a crystal ball, the actual share price is determined more by market sentiment and speculation. Thus, there is often no real relationship between a firms cash flow, and its stock price.
Why are acquisition and merger strategies popular in many firms competing in the global economy?
Firms use merger and acquisitions strategies to improve their ability to create more value for all stakeholders, including shareholders
How do free cashflows and weighted average cost of capital interact to determine a firms value?
they interact because of the gravity
What gross product includes the goods and services produced by purchases from foreign firms?
Gross Domestic Product (GDP) includes the total value of all goods and services produced within a country's borders, regardless of whether they are produced by domestic or foreign firms. However, when considering the contributions of foreign firms specifically, Gross National Product (GNP) accounts for the value of goods and services produced by a nation's residents, regardless of where they are located. Thus, goods and services produced by purchases from foreign firms are reflected in GDP but not directly in GNP.
Is a firms cost of capital influenced by net income capital structure or par value of common stock?
Capital structure
True or False Assets such as the quality of a firms employees are considered tangible in nature and thus have substantial value as collateral?
true
What do firms seek?
Firms seek to maximize profitability and ensure sustainable growth while delivering value to their customers. They aim to effectively utilize resources, maintain a competitive edge, and adapt to market changes. Additionally, firms strive for innovation, efficiency, and stakeholder satisfaction to enhance their overall performance and long-term success.
Explain why Net Present Value method is more famous academically while Internal Rate of Return method of evaluating investments is applied by most firms in practice?
What is presesent value
