Hrtm 421 Ch. 5 Study (A+ Guaranteed)

Need for growth: private companies correct answers Expect profit, cash flow, and ROI to increase Need for growth: stockholders correct answers Expect price of their stock to increase Shareholder Value correct answers current market price of common stock MULTIPLIED by number of shares outstanding Shareholder Value: private company correct answers sales price of the company on the open market Market Value correct answers number of shares of common stock MULTIPLIED by current market price of one share of common stock EBITDA correct answers Earnings before interest, Income Taxes, Depreciation, and Amortization Earnings Per Share correct answers EBITDA (divided by) number of shares of common stock outstanding MULTIPLE correct answers current market price of a company's common stock (divided by) Earnings Per Share BETA correct answers indicates the risk of an investment relative to the risk of market Diluted correct answers reduces earnings per share company stores correct answers units owned and operated by franchisor initial public offering correct answers where stocks of a company are first sold to public T/F Shareholder value for a private company is the current market price of its common stock multiplied by the number of share of common stock outstanding correct answers False; public company T/F The more capital a company requires for growth, the quicker the growth rate correct answers False; the slower the growth rate T/F Steady, sustained growth in the number of properties a company owns or manages provides a clear career path for its employees correct answers True T/F To increase profits, a higher sales volume can be achieved by either raising the cost of products or by selling more products correct answers True (its a trick)