Quiz Ch 01 – Causes of Agency Costs in a Corporation
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
What could be a reason for a corporation to experience agency costs?
What could be a reason for a corporation to experience agency costs?
Who are considered claimants to a firm’s income stream?
Which financial technique should you employ if you plan to invest $5,000 per year in a retirement fund and want to determine the future value of the fund when you retire?
What is the most accurate description of the concept of compound interest?
What is the opportunity cost of capital for a risky project?
True or false: The present value for growing perpetuity with a future cash flow C1 is calculated as [C1/(r – g)], where r > g.
Which statement is accurate?
Which bond is more responsive to a 0.75 percent interest rate change?
Determine the duration of a bond with a face value of $1,000, no coupon rate, a yield to maturity of 9%, and a maturity period of 10 years:
In your capacity as CFO, and holding all other factors constant, which outcome would you favor concerning the price of your corporation’s bonds?