To reduce the incentives of financial institution managers to engage in excessive risk taking regulators might...
To reduce the incentives of financial institution managers to engage in excessive risk taking regulators might require that bonuses be ________.
A) paid immediately
B) paid after several years
C) paid after several years only if the firm remains in good financial health
D) paid in the form of stock options
Homework Answers
CORRECT OPTION IS:- D) paid in the form of stock options.
JUSTIFICATION:- long-term growth and stability are encouraged through restricted stocks, stock options.By this method of incentivising managers are also made partial long-term owners in the firm through stock grants and stock options, which provides them with a direct way to benefit from incremental improvements in the value of the firm
Add Answer to:
To reduce the incentives of financial institution managers to
engage in excessive risk taking regulators might...
In this portion of the assignment, time value of money is considered. A company expects to...
In this portion of the assignment, time value of money is considered. A company expects to have annual cash flows of $50,000 for the next four years, and $100,000 in year five, after which it will cease to exist and have no residual value. Assume that all cash flows occur at the end of each year and the interest rate is 5%. What is the total value of the company today (before consideration of risk)? The company’s risk managers have...
9. Value added to a firm Financial statements reflect only book values of the data that...
9. Value added to a firm Financial statements reflect only book values of the data that analysts use to evaluate a company's performance. To determine if a firm's earnings, after taxes but before the payment of interest and dividends, are sufficient to compensate both the firm's bondholders and shareholders, Stern Stewart Management Services developed an analytical technique called economic value added (EVA). EVA effectively measures the amount of shareholder wealth that the firm's management has added to the value of...
Financial statements reflect only book values of the data that analysts use to evaluate a company's...
Financial statements reflect only book values of the data that analysts use to evaluate a company's performance. To determine if a firm's earnings, after taxes but before the payment of interest and dividends, are sufficient to compensate both the firm's bondholders and shareholders, Stern Stewart Management Services developed an analytical technique called economic value added (EVA). EVA effectively measures the amount of shareholder wealth that the firm's management has added to the value of the firm during a period of...
31. Value added to a firm Financial statements reflect only book values of the data that...
31. Value added to a firm Financial statements reflect only book values of the data that analysts use to evaluate a company's performance. To determine if a firm's earnings, after taxes but before the payment of interest and dividends, are sufficient to compensate both the firm's bondholders and shareholders, Stern Stewart Management Services developed an analytical technique called economic value added (EVA). EVA effectively measures the amount of shareholder wealth that the firm's management has added to the value of...
Who cares about personal integrity in business ethics? It has become something of an institution for...
Who cares about personal integrity in business ethics? It has become something of an institution for you to go out drinking with friends on Friday night. However, on this particular Friday night, you not feeling so great. Yes, you are holding an expensive cocktail in your hand, with some of your best mates around, all very much up for a big night out. Your best friend from college, Peter, will be arriving any minute now. You are a regional marketing...
You are given the following information for McGee Corporation. Prepare (in good form) a balance sheet...
You are given the following information for McGee Corporation. Prepare (in good form) a balance sheet for 2018 for the company. 2018 Accounts Receivable $2,480 Property, Plant and Equipment 16,400 Cash 13,300 Accumulated Depreciation 6,020 Inventory 5,800 Accounts Payable 11,800 Common stock 9,990 Long-Term Debt 7,800 Retained Earnings 2,370 10. Select all that is/are true about the cash flows of a firm a. In measuring free cash flows we are more interested in considering cash flows from an accounting perspective...
Operating income is a good summary measure of short-term financial performance. By itself, however, it does not indicate...
Operating income is a good summary measure of short-term
financial performance. By itself, however, it does not indicate
whether operating income in the short run was earned by taking
action that would lead to long-run competitive advantage. For
example, a manager might increase short-term operating income by
producing more product while ignoring quality or the amount of
rework. However, the company would like to see an increase in
operating income without sacrificing quality. This problem
illustrates one compensation method that...
1) A bond is a ["financial contract: a borrower agrees to repay the amount that was...
1) A bond is a ["financial contract: a borrower agrees to repay the amount that was borrowed and also a rate of interest over a period of time in the future.", "risk-free investment", "type of stock in a company", "rate of interest"] and also a ["risk-free investment", "rate of interest", "guarantee of payment", "rate of business growth"] over a period of time in the future. A corporate bond is issued by firms, but bonds are also issued...
Walt Davies and Shane O’Brien are district managers for Lee, Inc. Over time, as they moved...
Walt Davies and Shane O’Brien are district managers for Lee, Inc. Over time, as they moved through the firm’s sales organization, they became close friends. Walt, who is 33 years old, currently lives in Princeton, New Jersey. Shane, who is 35, lives in Houston, Texas. Recently, they were discussing various company matters, as well as bringing each other up to date on their families, when the subject of investments came up. Each had always been fascinated by the stock market,...
Managerial Compensation is a highly controversial topic in our society today. Some believe that CEO compensation...
Managerial Compensation is a highly controversial topic in our society today. Some believe that CEO compensation is warranted while others believe that there should be a cap on the level of compensation managers can earn. After reading the section in Chapter 1 on "The Agency Problem and Control of the Corporation," please weigh in on this debate. Be sure to consider important factors such as agency problems and the concept of maximizing shareholder value. Do these views differ in reference...
9. Value added to a firm Financial statements reflect only book values of the data that analysts use to evaluate a company's performance. To determine if a firm's earnings, after taxes but before the payment of interest and dividends, are sufficient to compensate both the firm's bondholders and shareholders, Stern Stewart Management Services developed an analytical technique called economic value added (EVA). EVA effectively measures the amount of shareholder wealth that the firm's management has added to the value of...
Financial statements reflect only book values of the data that analysts use to evaluate a company's performance. To determine if a firm's earnings, after taxes but before the payment of interest and dividends, are sufficient to compensate both the firm's bondholders and shareholders, Stern Stewart Management Services developed an analytical technique called economic value added (EVA). EVA effectively measures the amount of shareholder wealth that the firm's management has added to the value of the firm during a period of...
31. Value added to a firm Financial statements reflect only book values of the data that analysts use to evaluate a company's performance. To determine if a firm's earnings, after taxes but before the payment of interest and dividends, are sufficient to compensate both the firm's bondholders and shareholders, Stern Stewart Management Services developed an analytical technique called economic value added (EVA). EVA effectively measures the amount of shareholder wealth that the firm's management has added to the value of...
Operating income is a good summary measure of short-term
financial performance. By itself, however, it does not indicate
whether operating income in the short run was earned by taking
action that would lead to long-run competitive advantage. For
example, a manager might increase short-term operating income by
producing more product while ignoring quality or the amount of
rework. However, the company would like to see an increase in
operating income without sacrificing quality. This problem
illustrates one compensation method that...
Most questions answered within 3 hours.
-
What are some strategies for eliminating service barriers?
By using your knowledge of
behavioral styles, please...
asked 2 minutes ago -
What are the decimal numbers for 159, 150, 200, 113, 225, 87,
106, 81 when converted...
asked 10 minutes ago -
Calculate and plot the number and weight distributions of x-mers
found in a step-growth polymerization for...
asked 29 minutes ago -
The Baily Corporation has developed a specialized software
program that improves inventory control capability. The following...
asked 33 minutes ago -
Problem 5-4A (Part Level Submission) Wolford Department Store is
located in midtown Metropolis. During the past...
asked 33 minutes ago -
Preparation of Benzoic Acid using a Grignard Reagent URGENT
1. During your Grignard formation, a small...
asked 56 minutes ago -
A uniform magnetic field is perpendicular to the plane of a wire
loop. If the loop...
asked 55 minutes ago -
At the peak of your career, your were earning $120,000 and
holding a top level position....
asked 58 minutes ago -
. A permanent magnet is dropped south-end-down through a horizontal
circular coil with a radius of...
asked 1 hour ago -
Bernie's Beverages purchased some fixed assets classified as
5-year property for MACRS. The assets cost $28,000....
asked 1 hour ago -
How many ATPs are produced from the catabolism of a 10-C
molecule of fatty acid under...
asked 1 hour ago -
Before practicing a routine on the rings, a 64.8 kg gymnast
hangs motionless, with one hand...
asked 1 hour ago