Questions from Corporate Finance

Q: Describe the nature of the basic owner-manager agency relationship.

Describe the nature of the basic owner-manager agency relationship.

Q: Define agency costs and describe both types.

Define agency costs and describe both types.

Q: What is the primary goal of the corporation?

What is the primary goal of the corporation?

Q: What role does the board of directors serve?

What role does the board of directors serve?

Q: What are the main advantages and disadvantages of the corporation structure?

What are the main advantages and disadvantages of the corporation structure?

Q: What form of investment income has the highest tax rate in Canada

What form of investment income has the highest tax rate in Canada?

Q: What is the day count convention in Canada and the United States

What is the day count convention in Canada and the United States?

Q: Describe the causes of a “credit crunch.”

Describe the causes of a “credit crunch.”

Q: Explain how to calculate the present value and future value of an

Explain how to calculate the present value and future value of an ordinary annuity and an annuity due.

Q: Why is the present value of $1 million in 50 years’

Why is the present value of $1 million in 50 years’ time worth very little today?