Common problem for closely held corporations

Assignment Help Financial Management

Reference no: EM131514996

1. A common problem for closely held corporations is:

A) the lack of access to substantial amounts of capital

B) the seperation of ownership and managment

C) an abundance of agency problems

D) the restriction that sharholders receive only one vote each

2. The cost of capital:

A) is the expected rate of return on a capital investment.

B) is the interest rate that the firm pays on a loan from a bank or insurance company.

C) for risky investments is normally higher than the firm's borrowing rate.

D) is an opportunity cost determined by the risk-free rate of return.

Reference no: EM131514996

Questions Cloud

Government policies regarding use of net income-net earnings : what are the government's policies regarding the use of net income or net earnings?

Calculate the rate of heat loss : A standard 1 in. Schedule 40 iron pipe carries saturated steam at 250°F. The pipe is lagged (insulated) with a 2-in. layer of 85 percent magnesia.

Calculate the temperature at the midpoint of the insulation : The thermal insulation on a steam pipe (2 in. OD) consists of magnesia (85% magnesia) 2-in. thick with thermal conductivity k = 0.038 Btu/(h ft OF).

What assumptions are inherent in your model : A 6-in. nominal diameter (OD = 6.625 in.) pipe carrying vaporized heat transfer fluid at 750°F is covered with a 1.5-in. layer of high temperature insulation.

Common problem for closely held corporations : A common problem for closely held corporations is. The cost of capital:

Social trends affect the formation of new religions : Explain at least three ways that social trends affect the formation of new religions and dictate new religious movements.

Calculate internal rate of return-composite rate of return : Calculate (a) the internal rate of return (Hint: 20%

The results of exploration and trade by the chinese : Explain at least two (2) possible reasons for the differences between the results of exploration and trade by the Chinese and by the European states.

Companies to get money when needed to make improvements : There are many different ways for companies to get money when needed to make improvements or expansions within the company.

User Account

All Pages