Corporate board must run for election at each annual meeting

Assignment Help Business Economics

Reference no: EM131196237

1. Some U.S. companies have 1-year terms for directors. The entire corporate board must run for election at each annual meeting. Other companies have 3-year terms; only a third of directors face votes at each meeting. A 2004 study found that the companies with 3- year terms have lower stock prices, controlling for other factors. What might explain this finding? Explain.

2. Two firms have potential investment projects. Each project costs $100 to undertake. One firm’s project is safe. In a year, it produces $125 in revenue for sure. The risky firm’s project earns $150 with probability ¾, and zero with probability ¼. With asymmetric information, savers don’t know which one is risky and which is safe. Savers will buy bonds for $100 if expected payment is at least $110. Will the safe firm be able to sell a bond? Will the risky firm be able to sell a bond? Show your reasoning.

Reference no: EM131196237

Questions Cloud

Non-normally distributed data set describe : Describe two data sets (anything): one that is approximately normally distributed and another that is not normally distributed. Describe the data sets, and for the non-normally distributed data set describe its shape (Is it skewed? bimodal?)

Promotes after-school tutoring for middle school children : You work for a nonprofit organization that promotes after-school tutoring for middle school children, and your coworker has asked you to help him determine the equation for the supply of tutoring in a particular neighborhood. He states that his resea..

What value is that person most likely giving you : If someone tells you what their recently measured "IQ" is, what value is that person most likely giving you?- This is a Discussion thread question.

Problem regarding the correlational analysis : In no less than five sentences, develop a research question that can be tested using a correlational analysis. You will need to identify your variables clearly. Also, make sure to explain why this topic is of interest to you.

Corporate board must run for election at each annual meeting : Some U.S. companies have 1-year terms for directors. The entire corporate board must run for election at each annual meeting. Other companies have 3-year terms; only a third of directors face votes at each meeting. A 2004 study found that the compani..

Player expected earning : A) At the best, how much is the player's expected earning? Is it above or below $1? B) To make the lottery a fair bet, how much should the winning bonus be ? (i.e. find X, such that if the winning bonus is $X. the player's expected earning equals ..

Provide particular fashion facts about louis vuitton : Provide particular fashion facts about Louis Vuitton.- Provide important facts about the company , things that people don't know about it also 600 words about particular fashion facts about jimmy choo.

Expect the histogram of data : Suppose that someone sampled 100 Palm trees of the same species. Note: Most trees would be similar in height, but a few would be a little shorter and a few would be a little taller. They recorded the height for each tree. What shape would you exp..

What ideas can you implement to reduce workplace deviance : You are a restaurant owner and you are concerned with workplace deviance among your staff. Many employees come to work late or don’t show up at all. Theft of inventory and tips not belonging to them has been an issue in the past. Using psychological ..

User Account

All Pages