Affects corporate governance

Assignment Help Financial Management

Reference no: EM131870243

1. Explain how each of the following affects corporate governance and whether the impact is positive or negative.

a. Block ownership

b. Greenmail

c. Stock options as part of compensation

d. High level of debt

e. Board of Directors comprised by majority of outsiders and compensating based in part on performance of company.

2. ABC Ltd has operating revenue of $55,000 and expenses (fixed) of $5,000 and (variable) $12,000 p.a. If the required rate of return of equity holders is 8%, and the company tax rate is 30%, what is the value of ABC Ltd?

a. $376,250

b. $332,500

c. $481,250

d. $475,000

Reference no: EM131870243

Questions Cloud

How should depreciation be recorded : Jackie Bergez works for Sea Biscuit Co. She and Bob Welch, her manager, are preparing adjusting entries for annual financial statements

Describe the functions the system should perform : Describe the functions the system should perform. Identify the method of delivery (Web, client software, etc.). List the types of target users.

Calculate the rate of return on investment : Use the dupont formula to calculate the rate of return on investment, and show (a) profit margin, (b) the investment turnover, rate of return on investment

Legal steps technoware need to protect intellectual property : In an email to your fellow partners, analyze and describe the legal steps TechnoWare needs to take to protect its intellectual property.

Affects corporate governance : Explain how each of the following affects corporate governance and whether the impact is positive or negative.

What are the total cash collections for october : Door & Window Co. was organized on August 1 of the current year. What are the total cash collections for October

What is the cost of equity in an identical levered firm : What is the cost of equity in an identical levered firm where the cost of debt is 9% and the D/E ratio is 2.0?

Iq score in the sample : If a random sample of 16 adults is selected, find the probability that the average IQ score in the sample will be at least 92.5.

Why was the corporate veil issue so important : Was this lawsuit proper in West Virginia? In a Federal Court? What difference did it make whether the case ended up in Federal or State court?

User Account

All Pages