How does risk aversion and dividend retention problem apply

Reference no: EM131983586

Problem

Struc Ltd is an engineering consultancy company and has just appointed Samantha as a director. She has no ownership in the company but as a lawyer specialising in engineering and buying other businesses, the other shareholders thought she would add value to the board as they were looking to expand through acquisitions of other businesses. When she was appointed, she negotiated a significant bonus based on the increase in gross income.

How does the horizon, risk aversion and dividend retention problem apply to this scenario?

Reference no: EM131983586

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