Financial Management Essay

interrogate 1-3Suppose ternary honest individuals gave you their estimates of Stock Xs intrinsic value. One is your authoritative roommate, the second is a professional security analyst with an excellent write up on Wall Street, and the third is Company Xs CFO. If the ternary estimates differed, in which one would you extradite the most confidence? Why?Question 1-7Should stockholder wealth maximization be thought of as a long-term or short-term goal? For example, if one action increases a firms stock price from a current aim of $20 to $25 in 6 months and then to $30 in 5 years but another action keeps the stock at $20 for several years but then increases it to $40 in 5 years, which action would be better? Think of some item corporate actions that have these general tendencies.Question 1-9The president of Southern semiconductor device Corporation (SSC) made this statement in the companys yearbook report SSCs primary goal is to increase the value of our crude stockholders eq uity. Later in the report, the following announcements were made a. The company contributed $1.5 million to the symphony orchestra orchestra in Birmingham, Alabama, its headquarters city. b. The company is spending $500 million to overt a new plant and expand operations in China.No profits will be produced by the Chinese operation for 4 years, so earnings 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 more or less half of its assets in the form in U.S. treasury bonds, and it keeps these funds obtainable for use in emergencies. In the future, though, SSC plans to shift its emergency funds from Treasury bonds to common stocks.