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image text in transcribed 1. Describe agency conflict and the measures that can reduce the possibility of such a conflict in a corporation. Your response should be at least 250 words in length. 2. Valuation - options. The following information refers to a six-month call option on the stock of XYZ, Inc. o Price of the underlying stock: $100 o Strike price of the three-month call: $92 o Market price of the option: $18 a) What is the intrinsic value of the option? b) What is the option's time premium at this price? 3. Present value of single sum problem. You are going to be given $79,000 in 15 years. Assuming an inflation rate of 2.4%, what is the present value of this amount? 4. Risk and Return, Coefficient of Variation. Based on the following information, calculate the coefficient of variation and select the best investment based on the risk/reward relationship: Company A Company B Std Dev. 10.4 7.6 Exp. Return 13.2 8.7 5. Perpetuity problem. What is the value of a perpetuity with an annual payment of $70 and a discount rate of 5%

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