Public corporations with subsidiaries throughout the world

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1. Both Alward and Rofter are large public corporations with subsidiaries throughout the world. Alward uses centralized approach and makes most of the decisions for its subsidiaries. Rofter uses a decentralized approach and its subsidiaries make most of their own decisions. Which of the following is correct?

a) agency costs would be the same for both companies

b) a decentralized approach is almost always better

c) a centralized approach is almost always better

d) the agency problem would probably be more pronounced for Rofter  because of a higher probability that subsidiary decisions would conflict with the parent

e) none of the above

2. How do we use the simulation analysis for financial decision making

3. Describe several common sources of yardstick data that you can use as bases for developing forecast assumptions

4. Which stage is likely to produce a high ROIC?

 

Reference no: EM131917911

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