Contracting cost - agency costs, Finance Basics

Assignment Help:

Contracting Cost - Agency Costs

These are costs acquired in devising the contract between the shareholders and managers.

The contract is drawn to ensure management act in the excellent interest of shareholders and the shareholders conversely undertake to compensate the management with their effort.

Examples of the costs are as:

  • Negotiation fees
  • The contracts fee the legal costs of drawing.
  • The costs of background the performance standard.

Related Discussions:- Contracting cost - agency costs

Annual percentage rate, A current radio advertisement states that the avera...

A current radio advertisement states that the average American household has an average credit card debt of $25,000. Based on an APR (Annual Percentage Rate) of 18% (common for cre

Average rate of return - down payment, 1.  Determine what is the future val...

1.  Determine what is the future value of $20 a week for 10 (ten) years at 6 percent interest? Assume the first payment takes place at the end of this week. 2.  Kristina started

Objectives or goals of business, Objectives or Goals of Business 1. P...

Objectives or Goals of Business 1. Profit maximization - This is a traditional and a cardinal objective of a business.  This is so for the following purpose: To

APR, Determine how much of a total loan payment applies towards principal a...

Determine how much of a total loan payment applies towards principal and how much applies towards interest for a home mortgage of $177,219 with a fixed APR of 7.5% of 20 years

Advantages of residual theory, Advantages of Residual Theory 1. Savin...

Advantages of Residual Theory 1. Saving on floatation costs No require to raise debt or equity capital as there is high retention of earnings that necessitates no floatat

Determinants of Interest rate, What are the factors that affect the interes...

What are the factors that affect the interest rate and how?

Functions of capital markets, Functions of Capital Markets Functions o...

Functions of Capital Markets Functions of Capital Markets are as: 1. Providing long term funds that are essential for investment decisions. 2. Provide advices to investo

What is maximal value of firm, Suppose an entrepreneur owns a firm that has...

Suppose an entrepreneur owns a firm that has a production technology that generates the following revenue: R(e) = e 2 +100e where revenue depends on his effort level e. The monetar

Write Your Message!

Captcha
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