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Public corporations have access to new capital because: They are well-known, large, public companies. Investors know management has a fiduciary duty to them. Everyone knows

  1. Public corporations have access to new capital because:
    1. They are well-known, large, public companies.
    2. Investors know management has a fiduciary duty to them.
    3. Everyone knows the price of their stock.
    4. Their common shares and bonds trade on secondary markets.
    5. The SEC has approved their common shares and bonds for issuance.

  1. Double taxation happens to the extent a company _______

  1. Of the statements below, which one is the most accurate?
    1. Managers of a company have a duty to maximize profits.
    2. The Board of Directors of a company must abide by its contract with shareholders.
    3. The Board of Directors usually has an agency problem.
    4. The management of a company owes a fiduciary duty to shareholders to achieve a fair return on their investment.
    5. When conflicts of interest arise between shareholders and senior management, the company claws back senior managers bonuses.
  2. From a financial point of view, it is better to have:
    1. Accounts Receivables > Accounts Payables.
    2. Accounts Payables > Accounts Receivables, or

5.Miga Corporation built a new headquarters for $800 million with an accounting life of 40 years. Assuming straight line depreciation, after 7 years, what will the headquarters be valued at on Gigas balance sheet?

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