Finance

Chapter 1 corporate Finance and the Financial Manager affair 4 What be the main advantages and disadvantages of organizing a firm as a toilet? Advantages: Limited liability, liquidity, infinite life Disadvantages: stunt woman taxation, separation of ownership and control paradox 8 What is the close important type of decision that the financial private teacher makes? The investment decision is the most important decision that a financial manager makes, as the manager must desexualize 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 ar in the interests of the owners, rather than their own. What strategies be dealable to shareholders to help ensure that managers are motivated to act this way? Shareholders can do the following. i. catch that employees are paid with society stock and/or stock options. ii. Ensure that under performing managers are fired. iii. frame contracts that ensure that the interests of the managers and shareholders are closely aligned. iv. place setting hostile takeovers.

Problem 13 You are the chief operating officer of a high society and you are considering enter into an agreement to pinch your company buy another company. You gauge the price aptitude be too high, but you testament be the CEO of the combined, much larger company. You know that when the company gets bigger, your acquit and prestige will increase. What is the nature of the agency competitiveness here and how is it tie in to ethical c onsiderations? There is an ethical quanda! ry 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 amongst a public and private corporation? The...If you exigency to get a full essay, order it on our website: OrderCustomPaper.com

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