Reference no: EM131018189
1. Explain the following concepts:
a. The objective of the firm in corporate finance
b. The investment decision
c. The financing decision
d. The dividend decision
2. Discuss the four major conflicts that may occur with the objective of shareholder value maximization. For each conflict explain why it arises, provide an example, and discuss at least one way the conflict can be mitigated:
a. Stockholders and managers
b. Stockholders and bondholders
c. The firm and financial markets
d. The firm and society
3. Issues related to corporate governance:
a. What is corporate governance and what is its purpose?
b. Is it better or worse for shareholders if the board of directors of a company is comprised mainly of outsiders? Please explain your reasoning.
4. Research on the Internet the Efficient Market Hypothesis (EMH) theory.
a. Summarize the EMH.
b. What is the role of information in this theory?
c. If a drug company announced that drug trials of a major research initiative failed, based on the EMH, what would we expect to happen to the stock price and why?
d. Discuss some of the objections that "behavioral" financial economists have to the EMH.
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What you consider to be the key inherent risk factors
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Determine the reactions at a - b and c
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Prepare a cost of production report
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What do you think about the primality of p
: Let p = 23434549. We know that 4842 is larger than √P. Suppose it is given that any number less than 4842 does not divide p. What do you think about the primality of p?
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What is corporate governance and what is its purpose
: Discuss the four major conflicts that may occur with the objective of shareholder value maximization. For each conflict explain why it arises, provide an example, and discuss at least one way the conflict can be mitigated
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What is the perfectly competitive price of a taxi ride
: Assume that the taxi industry in the town of New City is perfectly competitive. Also assume that the marginal cost of a taxi ride is constant and equal to $5 per trip, What is the perfectly competitive price of a taxi ride
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Why would your boss be concerned about this issue
: What kinds of conflicts can arise by having "shareholder maximization" as the primary goal of a firm? Do you believe that firms should have a different "objective"? Please explain.
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Write two paragraphs about american hospital association
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Create a project schedule development
: The goal of Case Study One is to apply project management skills acquired in the first three modules to a real-world project or situation.
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