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2 years ago

Managerial reputation is an _ incentive that helps to mitigate the ___ principal-agent problem. Multiple Choice

1 answer:

7 0

Managerial reputation is an External incentive that helps to mitigate the Owner-manager principal-agent problem.

Explanation:

The theory of incentive propose that the behavior of an individual is motivated by the “pull” of external goals, such as rewards, money, or recognition.

In many situations in which a particular goal, such as a promotion at work, can serve as an external incentive that helps activate particular behaviors in an employee

Monetary incentives means to reward the workers for their performance and productivity through money.

Monetary incentives also include employee stock options, profit sharing plans, paid time off, bonuses and cash awards.

So we can say that 

Managerial reputation is an External incentive that helps to mitigate the Owner-manager principal-agent problem.

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Arvo Corporation is trying to choose between three alternative investments. The three securities that the company is considering

oee [108]

Answer:

9.635%

Explanation:

We shall use a table to compute different values as shown below.

Investment Return Taxable amount Tax Rate After-tax return

Dividend 9.8% 30% (n1) 18% 9.2708% (w1)

Municipal bond 8.8% 0% 18% 8.8%

Corporate bond 11.75% 100% 18% 9.635% (w2)

The after tax return with on the best investment alternative is 9.635% for corporate bonds

Workings:

9.8 *0.3*0.18 = 0.5292%

Return after tax = 9.8% -0.5292% = 9.2708%

18.75*0.18 =2.115%

Return after tax = 11.75% -2.115% = 9.635%

Notes:

n1 : 70% of the dividends are excluded from taxation. Only 30% is to be taxed

4 0

2 years ago

Dream, Inc., has debt outstanding with a face value of $6 million. The value of the firm if it were entirely financed by equity

Deffense [45]

Answer:

$650,000

Explanation:

For computing the decrease in the expected bankruptcy costs, first we have to determine the total firm value in each case which is shown below:

Total firm value = Equity + Debt × corporate tax rate

= $17,850,000 + $6,000,000 × 0.35

= $17,850,000 + $2,100,000

= $19,950,000

Now the total firm value based on market share

= Equity + Debt

= 350,000 shares × $38 + $6,000,000

= $13,300,000 + $6,000,000

= $19,300,000

The difference would be

= $19,950,000 million - $19,300,000

= $650,000

5 0

2 years ago

Master scheduling is __________. a. a field in the master schedule record that indicates the number of units that are available

Karolina [17]

Answer:

D if this is anything related to business then there is always something that reviews everything and the most common term for it is Master scheduling.

Explanation:

5 0

2 years ago

On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 210,000 shares of $30 par common stock at $34,

adoni [48]

Answer:

Jan. 22

Dr Cash $7,140,000

Cr Common Stock $6,300,000

Cr Paid in capital in excess of par $840,000

Feb. 27

Dr Cash $180,000

Cr Preferred Stock $135,000

Cr Paid-In Capital in Excess of Par-Preferred $45,000

Explanation:

Preparation of the entries for January 22 and February 27.

Jan. 22

Dr Cash $7,140,000

(210,000*$34)

Cr Common Stock $6,300,000

(210,000*$30)

Cr Paid in capital in excess of par $840,000

($7,140,000-$6,300,000)

Feb. 27

Dr Cash $180,000

(15,000*$12)

Cr Preferred Stock $135,000

(15,000*$9)

Cr Paid-In Capital in Excess of Par-Preferred $45,000

($180,000-$135,000)

7 0

2 years ago

What is the repitition of the elements of art?

torisob [31]

Answer:

Repeating of elements in a design.

Explanation:

Repetition is defined as repeating a single element several times in a design. In arts, repeat patterns are used by the artists. Repeat Pattern is the repetition of lines, shapes, colors, textures and forms. Artists and designers used patterns to discover their decorative style, to understand their structural form and to communicate their intrinsic beauty so for these reasons repetition is used.

7 0

2 years ago

Managerial reputation is an _____ incentive that helps to mitigate the _______ principal-agent problem. Multiple Choice

Managerial reputation is an _ incentive that helps to mitigate the ___ principal-agent problem. Multiple Choice