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James has just been hired to be the ceo of a major

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11.James has just been hired to be the CEO of a major firm. The board of directors, however, is concernedabout potential agency conflicts. Which of the following measures should the board implement tobestinduce James to act in the interest of the shareholders?A) Give James annual bonuses for achieving sales growth targets.
B) Link James' compensation to the firms stock price such as awarding him with the firm's stock or stockoptions.C) Explicitly restrict the specific types of projects James is able to accept to ensure funds are not spent onunnecessary luxuries.D) Place strict controls on how much James may spend so as to boost operating income.E) Provide James with the necessary funding to increase the companys asset base and thereby maximizeROA.12.You are presented with an investment opportunity that will pay out $75,000 in 8 years.Assuming anannual interest rate of 6%, what would you be willing to pay for the opportunity today?
13.Mr. Cowan has $15,500 to invest for 4 years. How much additional interest will he earn if the investmentreturns 3.5% per six months when compared to a 0.5% per month return?
14.Munching Corp is a food company with before-tax earnings of $100 million.Munching Corp pays out100% of its net income in dividends.Its current number of shares outstanding is 50 million, and you own150 shares.The corporate tax rate is 21%, and the personal tax rate on dividend income is 20%.What isyour after-tax income?

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