Coincide with the interests of the managers of the firm

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Reference no: EM131811026

1. When the interests of the owners of a firm do not coincide with the interests of the managers of the firm, the literature of business calls this _______.

an organizational disconnect.

a behavioral problem.

an agency problem.

territorial issues.

the Dilbert effect.

2. You invested $1,000 in an account which pays interest at the rate of 2% per quarter. How much will be in this account at the end of three years? Remember that the interest compounds.

$1,268.24

$1,200.00

$1,061.21

$1,259.71

$1,195.09

3. A company must make a large payment two years from now. The amount of that payment is $340,000. The company places $288,655.15 in an investment account today, in order to have $340,000 to make the payment in two years. What annual rate of return must the company be assuming?

1.18%

8.53%

8.90%

17.06%

17.79%

4. That vacation package to Barbados three years from now has a price of $4,100, not including airfare. If you can earn 9% per year in an investment account, what amount must you deposit in that account today in order to have $4,100 at the end of three years?

$1,253.82

$3,450.89

$3,761.47

$3,165.95

$4,088.95

Reference no: EM131811026

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