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Author Question: How managers choose to finance the business does not affect the rate of return to shareholders ... (Read 27 times)

kellyjaisingh

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How managers choose to finance the business does not affect the rate of return to shareholders
  because the rate of return is based on how the company uses the assets it has, not whether or not
  they paid for the assets with debt or equity.
 
  Indicate whether the statement is true or false

Question 2

Which of the following statements best represents the Agency Problem?
 
  A) The agency problem may interfere with the implementation of maximizing shareholder
  wealth.
  B) Managers might attempt to benefit themselves in terms of salary and perquisites at the
  expense of shareholders.
  C) The agency problem results from the separation of management and the ownership of the
  firm.
  D) all of the above


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deja

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kellyjaisingh

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Reply 2 on: Jul 11, 2018
:D TYSM


helenmarkerine

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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