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QveST [7]
3 years ago
6

A large corporation suffers from the​ principal-agent problem when​ its:

Business
2 answers:
bija089 [108]3 years ago
8 0

Answer:

The correct answer is letter "B": board of directors ties the salaries of management exclusively to the profits of the firm.

Explanation:

Principal-agent problems arise when a principal hires an agent to perform duties that conflict with the agent's best interest. The problem typically occurs when the principal provides incentives to act in the principal's interest but not the agent, generating a conflictive agenda.

In that case, if the boards of directors tie the salaries of management according to the profits of the firm, they will be acting on their own interest but not in the interest of the managers, making option "B" to represent a typical principal-agent problem.

amm18123 years ago
7 0
<span>The correct answer is d. management does not own a large share of firm stock and pursues its own interests rather than those of shareholders.When management pursues its own interests, there is a conflict with the interest of the shareholders who hired the management in the first place.</span>
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If a project costs ​$100 comma 000100,000 and is expected to return ​$27 comma 00027,000 ​annually, how long does it take to rec
stealth61 [152]

The formula for discounted payback period is DPP = -ln (1 – Id/C) / ln (1+d), wherein I is the initial investment, d is the discount rate, and C is the cash flow. Substituting values, DPP = - ln(1-((0.12)($100)/$27)) / ln(1+0.12). Therefore, DDP is equal to 5.19 years.

5 0
2 years ago
You own a bond that pays $64 in interest annually. The face value is $1,000 and the current market price is $1,062.50. The bond
drek231 [11]

Answer:

the yield to maturity of this bond is 5.7%

Explanation:

given data

pays interest annually C =  $64

face value F = $1,000

current market price P = $1,062.50

bond matures n = 30 years

solution

we get here yield to maturity that is express as

yield to maturity =

yield to maturity = [C+ (F-P) ÷ n] ÷ [(F+P) ÷ 2   ]     .................1

put here value and we get

yield to maturity = \frac{64+(1000-1062.50)}{11}  ÷ \frac{(1,000+1,062.50)}{2}

yield to maturity = 0.057

so that the yield to maturity of this bond is 5.7%

6 0
2 years ago
How can a person become a dentist​
Shtirlitz [24]

Explanation:

It generally takes eight years to become a dentist: four years to earn a bachelor's degree as an undergraduate and four years to earn a DDS or DMD in dental school. If you're interested in specializing, you'll also need to complete a dental residency (more on that below).

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8 0
2 years ago
Marginal utility is the​ ________ satisfaction gained by consuming​ ________ of a good.
Tamiku [17]

Marginal utility is the extra satisfaction gained from consuming one more unit of a good.

3 0
3 years ago
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your
arlik [135]

Answer and Explanation:

a)

If you charge $40 for X then everyone will buy as everyone is willing to pay atleast $40. this means all three groups buy that is 3*1000 buyers.So profit from X = 3000*40= $120,000

And since everyone is willing to willing to pay atleast $60 for Y again all three groups will buy so profit from Y =3000*60=$180,000

profits=$300,000

b)

If you charge $90 and $160 for X and Y respectively you will have only 1000 buyers for each product as others are unwilling to pay this much.

So profits = 1000*90 + 1000*160=$250,000

c)

for a bundle of X and Y buyers are willing to pay a total of $150, $210 and $200 across the three categories.

So everyone will buy a bundle of 1 X and 1 Y.

profits = 150*3000= $450,000

d)

If you charge $210 only the second will buy as they are willing to pay that much so profits =1000*210=$210,000

Also by selling X at $90 group 1 will buy X; profits=1000*90=$90,000

and by selling Y at $160 group 3 will buy Y; profits=1000*160=$160,000

total profits =$460,000

8 0
3 years ago
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