Finance

Chapter 1 integrated Finance and the Financial Manager caper 4 What be the main advantages and disadvantages of organizing a firm as a toilet? Advantages: Limited liability, liquidity, infinite life Disadvantages: take over taxation, separation of ownership and control paradox 8 What is the nigh important type of decision that the financial private instructor makes? The investment decision is the most important decision that a financial manager makes, as the manager must adjust how to put the owners money to its best use. Problem 10 Corporate managers go a direction for the owners of the corporation. Consequently, they should make decisions that atomic number 18 in the interests of the owners, rather than their own. What strategies are bestowable to shareholders to help ensure that managers are motivated to act this way? Shareholders can do the following. i. check that employees are paid with society stock and/or stock options. ii. Ensu re that underperforming managers are fired. iii. frame contracts that ensure that the interests of the managers and shareholders are closely aligned. iv. rally hostile takeovers.

Problem 13 You are the chief operating officer of a high society and you are considering enter into an agreement to drop your company buy another company. You gauge the price qualification be too high, but you testament be the CEO of the combined, much larger company. You know that when the company gets bigger, your relent and prestigiousness will increase. What is the nature of the agency competitiveness here and how is it associate to ethi cal considerations? There is an ethical q! uandary when the CEO of a firm has opposite incentives to those of the shareholders. In this case, you (as the CEO) have an incentive to potentially overpay for another company (which would be damaging to your shareholders) because your pay and prestige will improve. Problem 14 What is the residual in the midst of a public and private corporation? The...If you exigency to get a full essay, order it on our website: BestEssayCheap.com

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