21. Which one is least apt to convince managers to work in the best interest of the current stockholders
A. Receiving a bonus based on company profits
B. Receiving stock options
C. Being threatened by a proxy fight
D. Receiving a bonus based on company size
E. Receiving company shares based on increases in share value
Proxy fights are unhealthy and unfriendly contest for control over an organization. These proxy fights are carried out by corporate activists against the incumbent management. As such, proxy fights never provide any incentive for managers to work in the best interest of the current stock holders.
Answer is C. Being threatened by a proxy fight
21. Which one is least apt to convince managers to work in the best interest of...
26. Which one of the following is the least apt to encourage managers to act in the best interest of the shareholders? A. Shareholder election of the board of directors, who in turn select managers B. Threat of takeover by another firm C. Linking manager compensation to share value D. Compensating managers with fixed salaries E. Granting stock options to key managers
Which one of the following is least likely to encourage managers to act in the best interest of shareholders? Shareholder election of the board of directors, who in turn select managers Threat of a takeover by another firm Linking manager compensation to share value Compensating managers with fixed salaries Compensating managers with stock options
please also discuss why two other options are incorrect 5. A stakeholder is: a.) A person who owns shares of stock. b.) Any person who has voting rights based on stock ownership of a corporation. c.) A person who initially founded a firm and currently has management control over that firm. d.) A creditor to whom a firm currently owes money. e.) Any person or entity other than a stockholder or creditor who potentially has a claim on the cash...
7. Agency conflicts between managers and shareholders Aa Aa Remember, an agency relationship can degenerate into an agency conflict when an agentacts in a manner that is not in the best interest of his or her principal. In large corporations, these conflicts most frequenty involve the enrichment of the firm's executives or managers (in the form of money and perquisites or power and prestige) at the expense of the company's shareholders. This usurping and reallocation of shareholder wealth is most...
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please need it MULTIPLE CHOICE. (4 points each) Choose the one alternative that best completes the statement or answer the question. 1) A liquidating dividend: A) Represents a distribution of a corporation's profits to the stockholders. B) Occurs whenever a corporation distributes non-cash assets as a dividend to its stockholders C) Occurs when a corporation distributes shares of its own stock as a dividend rather than cash D) Represents a return of invested capital to a corporation's owners, the stockholders...
Check my work 3 On December 31, 2017, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8% noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred shareholders, respectively, on December 15, 2018 33.34 oints On February 28, 2018, Dow sold 60,000 common shares. Also, as a part of a 2017 agreement for the acquisition of...
Intermediate Accounting II Homework Problems Chapter 16 1. The stockholders’ equity section of Whaler Inc. at the beginning of the current year appears below. Common stock, $1 par value, authorized 5,000,000 shares, 800,000 shares issued and outstanding $ 800,000 Paid-in capital in excess of par—common stock 16,100,000 Retained earnings 260,000 During the current year, the following transactions occurred: a. The company issued to the stockholders 500,000 rights. Ten rights are needed to buy one share of stock at $21. The...
Affects Employee Engagement, Satisfaction, and Trust Most managers would agree that motivated, productive employees are crucial for organizational success, regardless of company size, industry, or corporate strategy. The question is how to motivate them. Offering employees performance-based incentive pay is one common approach, and it usuallyWe were unable to transcribe this imageand trusting management less. This contradicts previous studies, in which profit-sharing initiatives have been associated with positive employee outcomes Our analysis did reveal some important nuances about profit-related pay....
Excel SIM: Selected Financial Ratios 1. Compute and interpret financial ratios that managers use to assess liquidity. 2. Compute and interpret financial ratios that managers use for asset management purposes 3. Compute and interpret financial ratios that managers use for debt management purposes. points SS.fi FILE HOME INSERT ? X Selected Financial Ratios - Excel FORMULAS DATA REVIEW - Sign In eBook PAGE LAYOUT VIEW Print * Calibri -110 A À = % D D References Paste B I U...