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katrin2010 [14]
3 years ago
13

Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial​ man

agers? A. Bill chooses to pursue a risky investment for the​ company's funds because his compensation will substantially rise if it succeeds. B. Michael chooses to enhance his​ firm's reputation at some cost to its shareholders by sponsoring a team of athletes for the Olympics. C. Sue instructs her staff to skip safety inspections in one of the​ company's factories, knowing that it will likely fail the inspection and incur significant costs to fix. D. James ignores an opportunity for his company to invest in a new drug to fight​ Alzheimer's disease, judging the​ drug's chances of succeeding as low.
Business
1 answer:
fredd [130]3 years ago
3 0

Answer:

A. Bill chooses to pursue a risky investment for the​ company's funds because his compensation will substantially rise if it succeeds. 

Explanation:

An agency conflict problem usually arises when the agent (managers) do not act in the best interest of his principals (e.g. shareholders) usually because of selfish interests of the agent (manager).

I hope my answer helps you

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Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growt
horrorfan [7]

Answer:

current share price = $70.53

Explanation:

Share Price:

A share price is the amount it would cost to buy one share in a company.

Formula:

share price = future dividends * Present value of discount factor(16%, time period)

As the company just paid a dividend of $3.45 and dividends are expected to grow at a rate of 28 percent for the next three years so

Dividend for 1st year = (3.45*1.28) = $4.416

Dividend for 2nd year = (4.416*1.28) = $5.65248

Dividend for 3rd year = (5.65248*1.28) = $7.2351744

Now we need to calculate the value for 3rd year.

Formula:

Value after 3rd year = (Dividend for year 3*growth rate) / (required rate-growth rate)

Therefore by putting the values in the above formula, we get

Value after 3rd year = (7.2351744 * 1.074) / (0.16 - 0.074)

Value after 3rd year = $90.35555007

Therefore by putting the values in the share price formula, we get

current share price = 4.416 / 1.16 + 5.65248 / 1.16^2 + 7.2351744/1.16^3 + 90.35555007 / 1.16^3

current share price = $70.53

4 0
3 years ago
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Pro
vlada-n [284]

Answer:

The mark up percentage on total cost is 13%.

Explanation:

Mark up percentage on total cost refers to the profit as a percentage of the total cost.

Therefore, the mark up percentage on total cost can be calculated using the following formula:

Mark up percentage on total cost = (Desired profit / Total cost) * 100 ......... (1)

Where;

Desired profit = $143

Total cost = $1,100

Substituting the values into equation (1), we have:

Mark up percentage on total cost = ($143 / $1,100) * 100 = 0.13 * 100 = 13%

Therefore, the mark up percentage on total cost is 13%.

8 0
3 years ago
Visa cards, gas cards and department store cards are all
34kurt
Cards,,,,,,?????????
3 0
3 years ago
On March 4 of 1999, XYZ Corporation takes out a $1 million loan. The company pays the interest semiannually. The six-month inter
Alex73 [517]

Answer: $85,500

Explanation:

From the question, we are told XYZ Corporation takes out a $1 million loan and the interest on the loan is paid semiannually.

We are also told that the six-month interest rate is six-month LIBOR 80 basis points, with a cap at 9.25%. Assume that LIBOR is at 8.5% on March 4, 1999, and 7.75% on September 4, 1999.

The second interest payments on the loan will be:

The interest rate will be:

Interest rate = LIBOR + 80bps

= 7.75 + 0.8

= 8.55%

Interest paid in the second period

= $1,000,000 × 8.55%

= $1,000,000 × 0.0855

= $85,500

Note that there is no need for using the cap since the interest didn't exceed 9.25%

5 0
3 years ago
How is controlling your language important in the workplace?
Andrej [43]

Answer:

it's important because it's make to long your progress in your workplace and don't get fired

6 0
3 years ago
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