Financial objectives that company might choose to pursue

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Reference no: EM132066513

1. Which of the following are examples of financial objectives that a company might choose to pursue?

(a) Provision of good wages and salaries

(b) Restricting the level of gearing to below a specified target level

(c) Dealing honestly and fairly with customers on all occasions

(d) Producing environmentally friendly products

2. Calculate the economic value added from the following information:

A company has reported operating profits after tax of N$70 million. The company’s investments amounts to N$600 million and its after tax cost of financing is 9%.

3. Suggest three ways of overcoming the agency problem.

4. Explain why a company may have a positive accounting profit and a negative EVA?

Reference no: EM132066513

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