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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
#how to calculate initial investment cash flows ..
Treasuries are the securities that theUS government issues for the completion of government projects. They are of different types like, treasury bills, treasury bon
Every business concern should have neigh adequate capital to run the business operations it should have neither redundant nor excess working capital non inadequate or Shortage of
What are the Government Securities Government is one of the biggest borrowers from capital and money market. We have already taken a look at money market securities offered by
Primary Market In an economy, at a given point of time, there will be people/entities called savers the surplus units, whose current income exceeds their current expenditure whi
How and why does working capital influence the incremental cash flow estimation for a planned large capital budgeting project? Explain. Many large projects need additional worki
This is again a distinction which becomes important in case of a default. The senior bondholders have to be paid before the subordinate bondholders. This means th
Dividend cover Dividend cover measures the relationship among earnings per share and net dividends per share. The higher the altitude of dividends for any given level of EPS t
Does high operating leverage always mean high business risk? Explain. High operating leverage doesn't always mean high business risk. If the company's sales are quite steady
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