Agency problem between management and shareholders

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1. a. Please list at least two ways to deal with the agency problem between management and shareholders, and discuss their effectiveness.

1. b. Other than the management-shareholders conflict discussed in class, please give two examples of agency problems in life. In each example, please identify the principal and the agent, and briefly discuss how to deal with the agency problem.

2. Please go to Yahoo! Finance (https://finance.yahoo.com), find any stock listed on the NYSE or NASDAQ, fill its information into the table below and answer the questions.

Company Name:
Trading Symbol:
Current Price:
Current Date/Time:
Previous Close Price:
Market Cap:
EPS:
Dividend:

a. Is the company paying any dividend? Please estimate the firm's net present value of growth opportunity (NPVGO), by assuming an effective annual discount rate of 10%.

b. Which industry is the company in? Please identify the company's peers.

c. Check the company's financial information and recent news. Is there any particular concern about the company's future performance? Would you recommend buying this stock?

Reference no: EM133072801

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