Which of the following is an example of an "Agency Problem"?

a$.$ The problem that results from potential conflicts of interest between managers of a

business and the board of directors.

b$.$ The problem that exists between stockholders and a general manager

c$.$ The conflict that exists between the Board of Directors and employees of the firm.

d$.$ The problem associated with financial managers and tax revenue agents

Incars Ltd$.$ has current assets of $$160,000$ and fixed assets of $$195,000.$ What is its return of

assets if net income is $$25,000?$

a$.5\mathrm{.}67\%$

b$.3\mathrm{.}33\%$

c$.7\mathrm{.}04\%$

d$.4\mathrm{.}78\%$

The primary operating goal of a publicly$-$owned firm interested in serving its stockholders

should be to

a$.$ Maximize its expected total corporate income.

b$.$ Maximize its expected EPS.

c$.$ Minimize the chances of losses.

d$.$ Maximize the stock price per share over the long run, which is the stock's intrinsic value.

The maturity risk premium is $0$ for bonds $1$ year or less. If the maturity risk premium is $0\mathrm{.}8\%$

in year $2,$ and increases by $0\mathrm{.}8\%$ per year thereafter, what is the Maturity risk premium on a $5$

year bond?

a$.5\mathrm{.}4\%$

b$.2\mathrm{.}6\%$

c$.2\mathrm{.}9\%$

d$.3\mathrm{.}2\%$