Define the following terms: a. Stockholders who vote with their feet versus active stockholders b. Proxy fight;
Question:
Define the following terms:
a. Stockholders who “vote with their feet” versus “active” stockholders
b. Proxy fight; takeover
c. The “wealth effect” of rising (or falling) stock prices
d. Agent; principal; agency relationship
e. Agency cost
f. Basic types of agency conflicts
g. Executive compensation program; Economic Value Added (EVA)
h. Executive stock options
i. Transparent
j. Off–balance sheet financing
k. Conflicts of interest
l. Sarbanes-Oxley Act
m. Real risk-free rate of interest, r*; nominal risk-free rate of interest, rRF
n. Inflation premium (IP); default risk premium (DRP); liquidity premium (LP)
o. Interest rate risk; maturity risk premium (MRP); reinvestment rate risk.
Step by Step Answer:
Intermediate Financial Management
ISBN: 9780324319866
9th Edition
Authors: Eugene F Brigham, Phillip R Daves