Answer:
Actions that would be most likely to reduce potential conflicts of interest between stockholders and managers are:
The composition of the board of directors is changed from all inside directors to all outside directors, and the directors are compensated with stock rather than cash.
Explanation:
For instance, Company XYZ will get its managers' conflict of interests reduced as it achieves goal congruence. The absence of goal congruence pushes the managers of Company XYZ not to run the business professionally in the best interest of their stockholders. But, by aligning the interests of managers with those of the stockholders through more stock compensation, managers are constrained to act in the best interest of all stockholders, including themselves.
Answer:
By applying a process of natural hedging, with integrated operational management, logistics and infrastructural investments, Trafigura can diversify its activities and investments so that risks are flattened out. For instance, its investments in storage and shipping capabilities ensure that if the demand for storage is low, the demand for shipping will increase and vice versa.
Furthermore, when Trafigura is not trading actively in the physical commodity, it can use its asset management, logistics, and distribution capabilities and globalized network of subsidiaries and activities to offset the low revenue from trading. These diversified investments and assets, therefore, enhance and complement its various activities so that its risk profile is constantly being managed in a balanced manner without incurring so much risk costs.
Explanation:
Trafigura Group Pte. Ltd. according to sources, is one of the world's "largest independent and integrated commodity traders and a logistics, warehousing, asset management, mining, and energy distribution conglomerate." As a multinational commodity trading company founded in 1993, Trafigura trades in base metals and energy, and is registered and headquartered in Singapore.
First calculate the effective interest rate because the
problem says that the interest is compounded semi-annually. The formula for
effective interest rate is ieff= [(1+i/n)^n] – 1. The calculated effective
interest rate is 10.25%. The value of the investment in 5 years could be
calculated using the equation, FV= PV (1+i)^n. The value of the investment then would be $244,334.194.
Answer:
High demand
Low supply
High prices
Explanation:
The demand and supply of products, goods and services is heavily dependent on several factors ranging from economic, health and social factors. Disease and viral outbreaks have devastating effects on the market forces of demand and supply which in most cases will impact the market negatively with characteristically high prices and scarcity of products. The mouth and hoof outbreak in Europe was one which impacted the economy including farmers, leather and hides workers and all whose businesses and sustainability depends on cattles and its products. Due to the contagious nature of the disease and the ease at which it could spread if curtailment isn't effected on time, millions of cattles were slaughtered on sighting the symptoms and it's products including skins are burnt leading to losses in billions on the path of cattle rearers, shortage of lather, hides and skins, restriction in international product trade in other to avoid its spread to other parts of the world. These resulted in low supply and high demand of cattles and its products including leather goods meaning High prices for little available.
