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You have become the General Manager of a small renewable energy company. The firm is doing well and you are very happy in your job.
You have become the General Manager of a small renewable energy company. The firm is doing well and you are very happy in your job. Then a major shareholder brings to you a proposal for a new venture. The new venture is high risk but potentially very high return. If you were to take on the new venture, you expect that your work week will expand by at least another 15 hours per week with very little additional compensation. After carefully weighing the personal costs to you and your family, you decide to decline the new project. You would say that this is an example of: Multiple Choice A firing offense A Direct Agency Cost A poor management decision An Indirect Agency Cost Some forecasters feel that the stock market is far above its fair value given the near depression level of unemployment in the real economy. Assume the S&P 500 declines at a constant annual rate of 2% for the next five years. Given a starting point of 3022, what value would you expect in five more years? Multiple Choice 2,732 2.329 2.241 2,569
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