Question
The finance manager chooses to pursue a risky investment for the company's funds because his compensation will substantially rise if it succeeds. Explain why this
- The finance manager chooses to pursue a risky investment for the company's funds because his compensation will substantially rise if it succeeds. Explain why this behaviour of the finance manager represents an agency problem.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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