Answer: Increasing current profits when doing so lowers the value of the company's equity.
Explanation:
The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.
When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.
If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.
The nominal interest rate will equals 6% if the required real interest rate is 4 percent and expected inflation area is 2 percent,
<h3>What is a Nominal interest rate?</h3>
It means the sum of the real interest rate that will be earned by the lenders and the expected rate of inflation on such loan.
Nominal interest rate = Real interest rate + Expected rate of inflation
Nominal interest rate = 4% + 2%
Nominal interest rate = 6%
Therefore, the Nominal interest rate equals 6%.
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Answer:
The answer is 2.71 percent
Explanation:
The interest payment is annually.
N(Number of periods) = 12 years
I/Y(Yield to maturity) = ?
PV(present value or market price) = $1,470
PMT( coupon payment) = $73.5 ( [7.35 percent x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 12; PV = -1470 ; PMT = 73.5; FV= $1,000; CPT I/Y= 2.71
Therefore, the Yield-to-maturity of the bond annually is 2.71 percent
Hmm Idk I'm just answering to boost my points
Answer:
The answer is: C) II and III
Explanation:
The benefits for filing your tax return online are:
- You can save money since you don't have to hire an accountant or other professional to file your taxes
- It is very simple and easy, since the tax software is very user friendly and intuitive.
- You can file your taxes from anywhere as long as you internet connection. This can save a lot of time and money, instead of having to physically go to an IRS office.
- Tax software helps you gain financial knowledge and that is always useful.
- It ensures accuracy since tax program can do accurate calculations on your behalf.
- You can receive your tax refund faster if you file your taxes online. Usually within 21 days the IRS is sending out refunds based on taxes filed only.