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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:
Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the foll
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Managerial Finance Functions Require skilful execution, control and planning of financial activities. Hence there are four significant managerial finance functions. Such are
Eye Field - Vertebrate Eye The development of eyes starts with evagination of the lateral wall of the forebrain. one on each side, which make the optic vesicles. By vital dye
effect of gdp in the domestic market
Example of Debt Finance An example: Interest = 10% tax rate = 30% The effective cost of debt (interest) = Interest rate (1 - T) = 10%(1-0.30) = 7% Consider comp
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