The separation of ownership and control describes

Assignment Help Financial Management
Reference no: EM13927959

The separation of ownership and control describes _________

a) The costs associated with owning separate stocks in the same firm.

b) The agency problem when a firm has too much debt in its capital structure.

c) The benefits of debt interest tax shields in capital structure.

d) The technique used by FBI special agents when they go undercover.

e) The agency problem when decision-making is separated from the benefits of ownership

Reference no: EM13927959

Questions Cloud

About the shares outstanding : The shareholders of the Pickwick Paper Company need to elect eight directors. There are 200,000 shares outstanding. What is the minimum number of shares you need to own to ensure that you can elect at least one director if the company has majority vo..
Suppose that health care organization had revenues : Suppose that a health care organization had revenues of $300,000 for March and that the payer mix is as follows: PAYER PERCENT OF PATIENTS PAYMENT LAG Medicare 40 3 months Medicaid 20 3 months Blue Cross 15 2 months Other insurer 15 1 month Self-pay ..
Calculate the cost of equity using the DCF method : Epley Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4 percent. The expected return on the market is 13 percent, and Treasury bills are yielding 5.1 percent. The most recent st..
Capital gains are treated as income and get taxed : In U.S., capital gains are treated as income and get taxed. For securities, long-term gains have higher tax rate than short-term gains. When one invests in futures market, the gains/losses are realized every day, which is called daily settlement. The..
The separation of ownership and control describes : The separation of ownership and control describes _________
What is its percentage after-tax cost of debt : Micro Spinoffs Inc. issued 10-year debt a year ago at par value with a coupon rate of 5%, paid annually. Today, the debt is selling at $1,210. If the firm’s tax bracket is 20%, what is its percentage after-tax cost of debt? Assume a face value of $1,..
What is the percentage cost of the preferred stock : Pangbourne Whit church has preferred stock outstanding. The stock pays a dividend of $8 per share, and sells for $40. What is the percentage cost of the preferred stock?
Accounting break-even production quantity for project : The accounting break-even production quantity for a project is 12,320 units. The fixed costs are $187,400 and the contribution margin per unit is $18.10. The fixed assets required for the project will be depreciated on straight-line basis to zero ove..
What is the equivalent monthly interest rate : A couple purchases a home and signed a mortgage for $240000 to be paid in equal monthly installments over 25 years, with interest i^(2) = 0.18. What is the equivalent monthly interest rate i? What are the monthly payments? How much principal is repai..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the coupon rate of these bonds

The current price of a $1,000 par bond is $1,101.72 and coupons are paid semi-annually in the amount of $38.50. What is the coupon rate of these bonds?

  What is the effective cost of borrowing in the case

Your firm has an average collection period of 20 days. Current practice is to factor all receivables immediately at a 1.00 percent discount.

  Consider period binomial model

Consider a 1-period binomial model with R=1.02, S0=100, u=1/d=1.05. Compute the value of a European call option on the stock with strike K=102. The stock does not pay dividends. Please submit your answer rounded to two decimal places.

  Different types of bonds such as treasury-corporate

There are alot of different types of bonds such as treasury, corporate, municipal, and foreign. Do all bonds have a return date?   Legally, The original maturates has a range from 10 to 40 years. What happens after 40 years if the business goes bankr..

  Paying annual dividends-desired rate of return

NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.57 a share. The following dividends will be $0.62, $0.77, and $1.07 a share annually for the following three years, respec..

  Which of the statements below is

1 which of the statements below is false?a the purpose of studying financial statements is to understand those portions

  Discount bond as the time to maturity decreases

What happens to a discount bond as the time to maturity decreases?

  Enable a company to raise additional equity capital

Which of the following actions will best enable a company to raise additional equity capital, other things held constant?

  Disregard tax shield from amortization of flotation costs

Suppose a company will issue new 25-year debt with a par value of $1,000 and a coupon rate of 10%, paid annually. The tax rate is 35%. If the flotation cost is 5% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shiel..

  Share initial margin requirement

You open a brokerage account on January 1 and sell short 500 shares of Apple Computer at $163.39 per share. The initial margin requirement is 50%. Assume that Apple pays an annual dividend on December 31 of $5.50 per share. What is the margin balance..

  Mortgage rate-what would be your monthly payment

On June 1, you borrowed $195,000 to buy a house. The mortgage rate is 2.5%. The loan is to be repaid in equal monthly payments over 15 years. All taxes and insurance premiums are to be paid separately. What would be your monthly payment?

  What he will earn by paying taxes prior to deposit

Timothy Clum is in the 25 percent tax bracket and is considering the tax consequences of investing $2,000 at the end of each year for 30 years, assuming the investment earns 8 percent annually. What is the amount of earnings that Timothy gives up by ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd