Chat with AI
Accounting for Decision Making and Control 7th Edition by Jerold Zimmerman
Edition 7ISBN: 978-0078136726Accounting for Decision Making and Control 7th Edition by Jerold Zimmerman
Edition 7ISBN: 978-0078136726 Exercise 1
MBA Students
One MBA student was overheard saying to another, "Accounting is baloney. I worked for a genetic engineering company and we never looked at the accounting numbers and our stock price was always growing."
"I agree," said the other. "I worked in a rust bucket company that managed everything by the numbers and we never improved our stock price very much."
Evaluate these comments.
Source: K Gartrell.
One MBA student was overheard saying to another, "Accounting is baloney. I worked for a genetic engineering company and we never looked at the accounting numbers and our stock price was always growing."
"I agree," said the other. "I worked in a rust bucket company that managed everything by the numbers and we never improved our stock price very much."
Evaluate these comments.
Source: K Gartrell.
Explanation
Verified
Verified
Stock Price:
The stock price is the value at which the shares of a company are traded over the registered stock exchange. The stock price of the company depends on earnings per share, expected future earnings of the company, innovations made by the company, demand for the company product in the market, and the profitability of the company. The company always takes care of its' share price in the market as the higher value indicates the high value of the company.
The share price of the company should always be increasing the market for a profitable company. The company should increase its, profitability by innovations, new researches, and launching new products. The acts done to take care of share price is not possible because of shares price increases if the company performs well in the market. If a company performs well in the business then, its' share price would increase automatically.
Hence, the contention made that 'share price increases without maintaining numbers or despite maintaining number share price decreased' is wrong.
The stock price is the value at which the shares of a company are traded over the registered stock exchange. The stock price of the company depends on earnings per share, expected future earnings of the company, innovations made by the company, demand for the company product in the market, and the profitability of the company. The company always takes care of its' share price in the market as the higher value indicates the high value of the company.
The share price of the company should always be increasing the market for a profitable company. The company should increase its, profitability by innovations, new researches, and launching new products. The acts done to take care of share price is not possible because of shares price increases if the company performs well in the market. If a company performs well in the business then, its' share price would increase automatically.
Hence, the contention made that 'share price increases without maintaining numbers or despite maintaining number share price decreased' is wrong.
Accounting for Decision Making and Control 7th Edition by Jerold Zimmerman
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
