Answer:
a. the owners of the firm also manage the firm
Explanation:
In domain of supply chain management and economics principal–agent problem can be regarded as one that occur when single person or an entity stand in the position of making decisions or in position of taking actions on behalf of another person/ entity Instance of this is real-life example where the way that companies are been owned and been operated. The owners of the company i.e "principal" of the company will be the one to elect a board of directors.
It should be noted that the principal-agent problem arises when the owners of the firm also manage the firm
Answer:
$150,000
Explanation:
Calculation for the amount of Cash raised for the Levy Company
Using this formula
Cash raised for Levy Company = Number of Bonds * Face value of the Bond
Let plug in the formula
Cash raised for Levy Company = 100 * $1,500
Cash raised for Levy Company = $150,000
Therefore the amount of Cash raised for the Levy Company will be $150,000
Answer:
Portfolio A and Portfolio B
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
The Market rate of return - Risk-free rate of return) = Market risk premium
Let us assume the market risk premium be X
For Portfolio A:
21% = 8% + 1.3 × X
13% = 1.3 × X
So, the X = 10%
For Portfolio B:
17% = 8% + 0.7 × X
9% = 0.7 × X
So, the X = 12.86%
Based on the market risk premium calculations, we can conclude that Portfolio A should be in short position while Portfolio B should be in long position as portfolio B has higher market risk premium than B
As not everybody can afford designer items, those who can, typically buy such items to increase their self-esteem, and/or view it as an accomplishment. Also, many will do so in a way to view themselves in a higher class than others.
Answer:
29.37%
Explanation:
Rate of return = Average annual income/Average initial investment
Average annual income = $3,700
Average initial investment = (I+s)/2
Average initial investment = (25,200+0)/2
Average initial investment = $12,600
Rate of return = $3,700/$12,600
Rate of return = 0.2936508
Rate of return = 29.37%
