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3 years ago

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers?

1 answer:

8 0

What could reduce potential conflicts of interest is the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions

Let understand that Shareholders are basically the “owners” of the company and they are entitled to dividend payments and stock price appreciation because they bought shares.

Let understand that Managers are the people or officers who manage the company (& shares) on a daily basis.

Now, there can be conflicts of interest between stockholders and managers because of disagreement on what should be and not.

The major actions that can help to reduce this conflict are covenants in bond agreements. By reason of this, the manager of limited on what to do with the funds of the shareholders and can be penalized if found defaulted by law.

Learn more about covenants in bond agreements

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A pizza monopolist employing third-degree price discrimination charges students $10 per pizza and everyone else $15 per pizza St

tangare [24]

Answer:

The price elasticity of demand for the students is:

inelastic.

Explanation:

The price elasticity of demand for the students is inelastic because there is no change in the quantity demanded by students that changes the price at which pizza is sold to the students. If one student buys the pizza, the price charged remains $10 and if 1,000 students buy the pizza, the price remains $10 per unit. Therefore, students' demand for the pizza is said to be static irrespective of price because the price is fixed.

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3 years ago

The two dimensions of the competing values framework are

Wewaii [24]

Answer: The two dimensions of the competing values framework are the internal focus and imagination and the flexibility and discretion.

Explanation: There are 2 dimensions but 4 models within the competing values framework. The reason this model is called the competing models framework is because each model conflicts the message of another. These framework models do not agree and often times compete for what the best option to make is.

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3 years ago

You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this pa

KIM [24]

Answer:

At an annual requirement of 40,000 units, selecting the low-cost option will save the company per year:

b) $50,000

Explanation:

a) Data and Calculations:

ALTERNATIVE FIXED COST VARIABLE COST

Special-Purpose Equipment $200,000 per year $15 per unit

General-Purpose Equipment $50,000 per year $20 per unit

Total Cost of Production for 40,000 units under the two alternatives:

ALTERNATIVE FIXED COST VARIABLE COST TOTAL COSTS

Special-Purpose $200,000 $600,000 ($15*40,000) $800,000

General-Purpose $50,000 $800,000 ($20*40,000) $850,000

b) The difference between the two alternatives in total costs is $50,000 ($850,000 - $800,000) with the low-cost alternative as the Special-Purpose Equipment.

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3 years ago

Theresa’s Flower Garden has 750 bonds outstanding that are selling for $989 each, 2,500 shares of preferred stock with a market

Sidana [21]

Answer:

weight of preferred stock = 4.63 %

Explanation:

given data

Number of outstanding bonds = 750

selling price = $989 each

preferred stock = 2,500 shares

market price = $47 a share

number of common stock = 30,000

common stock valued = $56 share

solution

we first get here total market value that is express as

total market value = Number of outstanding bonds × selling price per bond + number of preferred stock × market price per share + number of common stock × par value per share ......................1

put here value and we get

total market value = 750 × $989 + 2,500 × $47 + 30,000 × $56

solve it we get

total market value = $2539250

and

here now we get weight of preferred stock that will be

weight of preferred stock = Total value of preferred stock ÷ total market value × 100 .........................2

put here value

weight of preferred stock = ( 2,500 × $47 ) ÷ $2539250 × 100

weight of preferred stock = 4.63 %

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3 years ago

3.6.2 Teut (COT): The Pret la foi

koban [17]

The correct answer is B. Rural areas

Explanation:

High population densities, as well as high housing prices, are mainly found in cities or nearby areas as most jobs and industries are located in these areas. This increases not only the number of people that live in these zones but also the price of housing as the prices of properties are higher due to a higher demand. This means, zones such as inner-city neighborhoods, suburbs, and similar are highly populated and the house prices are high.

On the other hand, nowadays rural areas have a small population density because most people are not interested in living in rural areas as it would take more time to get to cities where jobs and major industries are. Similarly, the housing prices are lower because the demand or number of people interested in buying properties is lower, which makes general housing prices lower.

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4 years ago