Question
Which of the following five statements are false? Dual class shares are common in Sweden, but uncommon in the US. A pyramid structure implies that
Which of the following five statements are false?
Dual class shares are common in Sweden, but uncommon in the US.
A pyramid structure implies that despite holding a large capital fraction in companies, the controlling owners have only limited voting power.
While the protection of shareholder rights is a very important principle in Europe, in the US the stakeholder view of the corporation is most common.
It is important to keep in mind that good governance is value enhancing and so, in principle, is something investors in the firm should strive for.
Academic studies have supported the notion that greater managerial ownership is associated with fewer value-reducing actions by managers.
Which of the following five statements are correct?
Because value is lost when a resource is used by another project, we should include the opportunity cost as an incremental cost of the project.
An exploration of the effect on NPV of changing multiple project parameters is called sensitivity analysis.
The opportunity cost of using a resource is the cost it creates if the project in done.
Overhead expenses are often allocated to the different business activities for accounting purposes.
Scenario analysis breaks the NPV calculation into its component assumptions and show how the NPV varies as each one of the underlying assumptions change.
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