Discuss the agency costs in the Agency Theory in corporate governance and solutions applied thereto.

Q: What are mortgage discount points?  When does it make sense to pay points on a loan?  How can a…

A: Mortgage discount point are all such points which will be reducing the total amount of fees which an…

Q: An efficient portfolio is one that:   Select one: a.   maximises return for a given level of…

A: Efficient Portfolio is the Portfolio or group of stocks invested which maximises the expected rate…

Q: Access Enterprise Limited is a private company and has been in operation for over five years.    The…

A: Investment Income: Companies usually invest surplus funds in short-term securities to earn interest,…

Q: 3. Suppose a high schools graduate earns $40,000 per year while a college graduate makes $80,000.…

A: Earning of school graduate is $40,000 Earning of college graduate is $80,000 Cost of college per…

Q: Why are sellers willing to pay a commission to a broker to facilitate the sale of their property?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 1. Evaluate the following. a) Calculate the simple interest earned after investing $1000 at 8%…

A: To calculate the simple interest we will use the below formula   Simple interest  = P*r*t Where P -…

Q: Division D is considering two possible expansion plans. Plan A would expand a current product line…

A: Plan A Plan B Cost  $     85,00,000.00  $     83,00,000.00 Net Cash Inflow  $     16,25,000.00…

Q: friend is celebrating her birthday and wants to start saving for her anticipated retirement.  She…

A: There is need of planning for the retirement and if done on the time than will have good income on…

Q: Suppose you own 200 shares in AAPL and would like to protect your position from an unexpected drop…

A: Protective put strategy is the type of option strategy which will be helpful in protecting against…

Q: Suppose there are an infinite number of assets with an expected return of 12% p.a. and a standard…

A: Formula for Expected Return and Standard deviation of 2 asset and 3 asset portfolio w1,w2,w3 =…

Q: Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of…

A: Preferred stock selling price is calculated using following equation Price of preferred stock = D/r…

Q: 2) Capital raising involves a firm’s decision in ____________________. Group of answer choices…

A: A firm needs long term finance  like common stock, preferred stock, long term debt etc to meet its…

Q: If you would like to have $20,000 in 5 years, how much should you invest today if your investment…

A: Present value is the value today of future cash flows discounted at the required rate of return for…

Q: Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of…

A: The debt equity ratio is ratio of total loan capital to the equity capital in the capital structure…

Q: 4) If we require a 10% real return and we expect inflation to be 8%, what is the nominal rate based…

A: Real rate of return is inflation adjusted return after adjustment of inflation from the nominal…

Q: Rogoff Co.'s 15-year bonds have an annual coupon rate of 9.5%. Each bond has face value of $1,000…

A: Bonds are debt instruments issued by a company. The company that issues the bond pays a periodic…

Q: How is the wealth of a firm’s shareholders/owners measured by? Group of answer choices a)…

A: The objective of financial management is to maximize the wealth of shareholders, that is maximize…

Q: What is capital budgeting? Compare the advantages and disadvantages of various capital budgeting…

A: Capital budgeting is indeed the process by which a company evaluates potential large projects or…

Q: What is the bond's price?

A: Information Provided: Years to maturity = 10 Coupon rate = 6.25% semiannual  Par value = $1000…

Q: CMS Corporation's balance sheet as of today is as follows:   Long-term debt (bonds, at par)…

A: Bonds are debt instruments issued by a company. The company that issues the bond pays a periodic…

Q: A machine purchased for #919866 has a depreciable life of 7 years, and it has a terminal book…

A: Depreciation expense is the amount that a company's assets are depreciated for a single period,…

Q: Can you please explain more on the example?

A: Shadow banks facilitate lending using a variety of securitization and secured funding strategies,…

Q: uation of companies can be done by forecasting a series of cash flows and then estimating a horizon…

A: Value can be found as the discounted value of cash flow and discounted value of terminal value of…

Q: The stock that is selling for GH¢12 today is expected to pay GH¢ 1 next year, GH¢2 the year after…

A: The dividend discount model is used to find out the current price of the stock by calculating the PV…

Q: Describe some of the barriers to international portfolio diversification.

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: The direct capitalization and discounted cash flow models are used primarily in income- producing…

A: You have asked two unrelated questions. I have answered the first one. Please post the second…

Q: A stock with a current market price of $50 has an associated put option priced at $6.5. This put…

A: The put option is the option for selling an underlying security. It is a bearish position which will…

Q: At a used car sales lot, a person has $2 000 for a down payment and can afford $150 per week. The…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: The consumer price index is increasing. The price of gold is also increasing and the Federal Reserve…

A: Yield curve is a graphical representation of the term structure of interest rates.It shows the…

Q: HH Companies has identified two mutually exclusive projects. Project A has cash flows of −$40,000,…

A: Given, The project A and project B.

Q: 2. When you deposit $50 in currency at Old National Bank A) its assets increase by less than $50…

A: When you deposit money in the banks than some part of it goes to deposit and some part of it goes to…

Q: Suppose the current price of the bond is $95, the YTM is 4%, and the duration of the bond is 9. If…

A: Initial price of bond is $95 YTM is 4% Duration of bond is 9 YTM decrease from 4% to 3.9% To Find:…

Q: Checkpoint 9.2 and Checkpoint​ 9.3)  ​(Bond valuation)  ​Fingen's 16​-year,1000 ​$ par value bonds…

A: Yield to maturity of bond is rate realized when bond is held till maturity of bond and this discount…

Q: Assume that 1 unit of Currency Y costs 0.49 units of Currency X, 1 unit of Currency Z costs 7.99…

A: Cross exchange rates Cross exchange rates are used to determine the true exchange rate between…

Q: Part B If DeShawn continues his employment at the same rate of increase in yearly salary, for which…

A: As asked in the question, Only Part B is to be solved

Q: Yield to Maturity for Annual Payments Wilson Corporation’s bonds have 15 years remaining to…

A: Yield to maturity is reflecting the rate of return on bonds which will be required by investors for…

Q: Eddie has $60,000 saved for retirement. This is currently invested in a conservative Balanced Fund…

A: Initial Amount  $    60,000.00 Balanced Fund rate 5% Time Period (In Years) 20 Extra Amount  $…

Q: ABC Corporation has the following information to estimate its liquidation value. Cash = 50,000…

A: Net liquidation value of the corporation will be the difference between all realised assets and net…

Q: Share repurchase proposal: Currently, the firm has available capital (cash and net income) of…

A: Stock repurchase  Repurchasing shares may help a stock's price remain stable, give investors their…

Q: ABC Corporation plans to purchase a call option for 1,000 Red Corp. ordinary shares at a strike…

A: Black Scholes Model is used to calculate the value of a call option and requires 5 variables to…

Q: The maximum loss a seller of a stock put option can suffer is the _

A: Put Option: Put option provides the buyer the right to sell an asset at a predetermined price.…

Q: Your company has been approached to bid on a contract to sell 5,200 voice recognition (VR) computer…

A: Here, Tax Rate is 25% Required Return is 13% Variable Cost is $165 Required NPV is $100,000

Q: Find the value of annuity at the end of indicated number if years Amount of deposit m= $100…

A: To calculate the future value of annuity we will use the below formula   Future value =…

Q: Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example…

A: To calculate the future value of annuity account we will use the below formula   Future value =…

Q: Your business manager forwards the following information to you. Your businesses earned a real rate…

A: Real rate of return = 0.076 or 7.6% Inflation rate = 0.096 or 9.6% Nominal rate of return = ?…

Q: What is the estimated current price of a share of ABC Company stock based on the Constant Dividend…

A: Constant Dividend Growth Model Current price = D1 /(Ke - g) Where D1 = Next expected dividend D1 =…

Q: What is the difference between a flexible budget and a static budget? Which one do you believe works…

A: Flexible budget- This budget is prepared in a way that it allows   changes in the assumption to be…

Q: Unfortunately it says that that is wrong, thats the answer i came up with at first also

A: Annual payment (A) = $1050 Annual interest rate (r) = 0.06 or 6% Period (p) = 21 years Total value…

Q: If $15,000 is invested at 3.5% for 20 years, find the future value if the interest is compounded the…

A: Initial investment (I) = $15,000 Interest rate (r) = 0.035 or 3.5% Period (t) = 20 years Future…

Corporate Ethics

Ethics refers to the moral values and principles that guide an individual. Corporate ethics refers to the moral behavior of a company and its employees while conducting business. Business ethics is another name for corporate ethics. Business ethics reflects the purpose of doing the business. Business ethics is the distinction between what is right and wrong in the workplace and the selection of the right set of actions. Every corporate entity follows business ethics to a large extent in order to survive and compete successfully in the market. Corporate entities that strictly adhere to business ethics gain the trust of their stakeholders and thus gain more customers. An organization follows compliance, i.e., following certain business policies, rules, procedures, and practices to deal with the problem arising from the business environment. Business ethics also ensures that they meet compliance requirements as it was connected with the activities of an organization.