Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Sign up and see all textbooks for free! Illustration


Foundations Of Financial Management
Found in: Page 471
Foundations Of Financial Management

Foundations Of Financial Management

Book edition 16th
Author(s) Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Pages 768 pages
ISBN 9781259277160

Answers without the blur.

Just sign up for free and you're in.


Short Answer

In which foreign industry has privatization been most important?


See the step by step solution

Step by Step Solution


The term privatization refers to the transfer of government or public-owned entities into the hands of private authorities for managing their operations.

Industry that requires privatization

Telecommunication is that foreign industry where privatization is considered most important because this industry includes critical and sensitive information.

In addition, private sectors run business operations with utmost discipline and provide efficient outcomes.

Most popular questions for Business-studies Textbooks

Question: The Bailey Corporation, a manufacturer of medical supplies and equipment, is planning to sell its shares to the general public for the first time. The firm’s investment banker, Robert Merrill and Company, is working with Bailey Corporation in determining a number of items. Information on the Bailey Corporation follows:

Bailey corporation

Income statement

For the year 20X1

Sales (all on credit)


Cost of goods sold


Gross profit


Selling and administrative expenses


Operating profit


Interest expense


Net income before taxes




Net income


Bailey corporation

Balance sheet

As of December 31, 20X1


Current assets:



Marketable securities


Accounts receivables




Total current assets


Net plant and equipment


Total assets


Liabilities and stockholders’ equity

Current liabilities:

Accounts payable


Notes payable


Total current liabilities


Long-term liabilities


Total liabilities


Stockholder’s equity:

Common stock (1,800,000 shares at $1 par)


Capital in excess of par


Retained earnings


Total stockholder’s equity


Total liabilities and stockholder’s equity


a. Assume that 800,000 new corporate shares will be issued to the general public. What will earnings per share be immediately after the public offering? (Round to two places to the right of the decimal point.) Based on the price-earnings ratio of 12, what will the initial price of the stock be? Use earnings per share after the distribution in the calculation.


Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.