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AGENCY THEORY
An agency relationship may be defined as a contract under which one or more people (the principals) hire another person (the agent) to perform some services on their behalf, and hand over some choice making authority to that agent. In the financial management framework, agency connection exists among:
(a) Shareholders and Managers(b) Debt holders and Shareholders
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Calculate expected dividends
You deposit $3,000 in a back account that pays 10% annually, how much would you have im your account after 5 years?
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