A conflict of interest between the stockholders and managers of a firm is referred to as the agency problem (option c).
<h3>What is the agency problem?</h3>
The agency problem is a conflict of interest between the managers of the company and the principal (shareholders). The agency problem
occurs when the interest of the managers and the shareholders are not aligned.
For example, if the income of managers are tied to net income, it might motivate managers to undertake risky projects that might not maximise shareholders wealth. This would lead to agency problem.
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Answer:
B
Explanation:
The capital market serves as an intermediator between households and firms. In a classic economic model, households are owners of capital resources, but firms need these resources to operate. Then, the capital market allows that households rent their capital resources to firms and firms pay them back. It is a beneficial allocation of resources for households and for firms.
Consumer price index is correct hope i am brainliest i need it
Answer:
The increase in debt investments is $2,850.63
Explanation:
The company would increase its debt investment by the difference between the interest revenue and the coupon payment made by Scott Company.
The interest revenue is calculated by multiplying the semi-annual effective yield by the carrying value of the investments which is $1,506,375.
The face value of the bond of $1600,000 is multiplied by the semi-annual coupon rate
Increase in investment=($1506375*11%/2)-($1,600,000*10%/2)=$2,850.63
Answer:
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<em>"If You can't do great things then, do small things in a great way" </em>
<em>Byee!</em>
<em>-Nezuko </em>