BUSI 408 HW1

BUSI 408 HW1 - person (CEO) and the stockholders. 3. The...

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BUSI 408 HW1 Haoyang Huang PID: 715099441 1. (1) The stockholders (can be a huge number) own the company. (2) The Stockholders manage the company by hiring someone to represent their interest. (3) Such relationship is called agency relationship and it exists because stockholders need someone who has expertise in maximizing the value of the stock. (4) Problems that may exist include an agency conflict between the management
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Unformatted text preview: person (CEO) and the stockholders. 3. The statement is wrong. There is no short-run versus long-run issue in terms of the goal. 6. No. The manager should accept it because it maximizes the value of the stock price. ($35 more than $25) 10. Because the profit for the shareholders are residuals....
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This note was uploaded on 02/27/2012 for the course BUSI 407 taught by Professor Bowen during the Spring '11 term at UNC.

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