Answer:
PRINCIPAL-AGENT PROBLEM
Explanation:
The possibility that management of the corporation may not be pursuing the same goals as those of stockholders is what is referred to as 'the agency problem'. This agency problem refers to the potential conflict of interest embedded in any corporate relationship where the party managing the company is different from the owners.
The shareholders for example might out a very risky loan for the business in order to get performance bonuses but that might not be in the best interest of the stockholders.
<h2><em>i thing it would be true if not tell me</em></h2>
Answer:
the present value of its growth opportunities (PVGO) is $0.56
Explanation:
The computation of the present value of growth opportunities is shown below:
= Price per share - (Earnings ÷ required rate of return)
= $41 - ($3.64 ÷ 9%)
= $41 - $40.44
= $0.56
hence, the present value of its growth opportunities (PVGO) is $0.56
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Income inequality ratio
Explanation:
The income inequality ratio is an incomplete picture because a single number cannot fully reflect the sources of the underlying differences in income.
Income inequality refers to the uneven distribution of income among the population of a particular place. It is the difference in the allocation of income in a particular country.
Income inequality occurs across different segments of the population such as gender(male and female), ethnic group, occupation, geographical location etc.
The Gini index is widely used to compare disparities in income.
Answer:
Innovation, job creation, financial independence and financial success
Explanation:
The United State of America is a capitalist state where individuals control the factors of production. Government,s participation is reduced to the minimal which might only be regulation.
Small businesses in America grows to become big companies as time goes on. They contribute in no small way to the economy of the united state in the following ways: innovation, job creation, financial independence and financial success.
