Reference no: EM133000756

Problem 1: Which of the following won't reduce a conflict of interest between the shareholders and senior management team?

Select one:

a. Hiring an internal auditor who installs and tests a system of internal controls within the company

b. Paying the Chief Executive Officer a large bonus because stock price had doubled within six months

c. A corporate raider (e.g. outside investor) begins a hostile takeover attempt of an underperforming company

d. Creating a board of directors audit committee composed of independent board members with finance expertise

Problem 2: A business had sales of $675,000, cost of goods sold of $423,000, operating costs of $143,000, and interest expense of $32,100. The marginal income tax rate is 13%. Calculate after-tax profit.

Select one:

a. $59,840

b. $54,390

c. $56,925

d. $66,903

e. $44,748