Questions from Corporate Finance


Q: What is an agency relationship, and what is an agency conflict

What is an agency relationship, and what is an agency conflict? How can agency conflicts be reduced in a corporation?

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Q: How can a lack of business ethics negatively affect the performance of

How can a lack of business ethics negatively affect the performance of an economy? Give an example.

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Q: What are some ways to resolve a conflict of interest?

What are some ways to resolve a conflict of interest?

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Q: Describe what an information asymmetry is in a business transaction. Explain

Describe what an information asymmetry is in a business transaction. Explain how the inequity associated with an information asymmetry might be, at least partially, solved through the market for goods...

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Q: What ethical conflict does insider trading present?

What ethical conflict does insider trading present?

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Q: What is the appropriate decision rule for a firm considering undertaking a

What is the appropriate decision rule for a firm considering undertaking a capital project? Give a real-life example?

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Q: Infosys Technologies, Inc., an Indian technology company, reported net

Infosys Technologies, Inc., an Indian technology company, reported net income of $419 million this year. Analysts expect the company’s earnings to be $1.468 billion in five years. What is the expected...

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Q: What is the general formula used to calculate the price of a

What is the general formula used to calculate the price of a share of a stock? What does it mean?

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Q: What is the cost of capital?

What is the cost of capital?

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Q: The profitability index is a tool for measuring a project’s benefits relative

The profitability index is a tool for measuring a project’s benefits relative to its costs. How might this help to eliminate bias in project selection?

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