Financial Management Essay

Question 1-3Suppose three h unrivaledst individuals gave you their estimates of line of credit Xs intrinsic value. One is your current roommate, the second is a professional security analyst with an excellent reputation on border Street, and the third is Company Xs CFO. If the three estimates differed, in which one would you thrust the most confidence? Why?Question 1-7Should stockholder wealthiness maximization be thought of as a long-term or short-term goal? For example, if one follow up increases a firms stock price from a current level of $20 to $25 in 6 months and then to $30 in 5 geezerhood but another action keeps the stock at $20 for some(prenominal) years but then increases it to $40 in 5 years, which action would be better? Think of some specific corporate actions that have these general tendencies.Question 1-9The president of Southern Semiconductor Corporation (SSC) make this statement in the companys annual report SSCs primary goal is to increase the value of our co mmon stockholders equity. Later in the report, the following announcements were make a. The company contributed $1.5 million to the symphony orchestra in Birmingham, Alabama, its provide city. b. The company is spending $500 million to open a peeled plant and expand operations in China.No profits provide be produced by the Chinese operation for 4 years, so pelf will be depressed during this period versus what they would have been had the decision been made not to expand in China. c. The company holds about half of its assets in the form in 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 bonds to common stocks.