Question
Answer All Questions; Submit as One Essay) 1. AGENCY PROBLEMS Who owns a corporation? Describe the process whereby the owners control the firms management. Describe
Answer All Questions; Submit as One Essay)
1. AGENCY PROBLEMS Who owns a corporation? Describe the process whereby the owners control the firms management. Describe the main reason why an agency relationship exists in the corporate form of organization. In this context, describe the types of problems that can arise.
2. ENTERPRISE VALUE A firms enterprise value is equal to the market value of its debt and equity, less the firms holdings of cash and cash equivalents. This figure is particularly of interest to potential purchasers of the firm. Why?
3. CURRENT RATIO Explain what it means for a firm to have a current ratio of .50. Would the firm be better off with a current ratio of 1.50? What if it were 15.0? Explain your answers.
4. PEER GROUP ANALYSIS As a financial manager, how might you use the results of peer group analysis to evaluate the performance of your firm? How is a peer group different from an aspirant group? Please number each of your answers.
This is very important so that I understand which questions you are responding to.
Assignment Criteria:
Thoroughly answered all of the questions
Spelling/Grammar at the college level:
References to course material with proper APA format
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