FIN 401 Lecture Notes - Agency Cost, Preferred Stock, Capital Budgeting
26 Sep 2014
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Wednesday, october 21, 9:00 a. m. version a - Aids allowed: closed book except for an 8"1/2 by 11" note sheet. Answer all multiple choice questions on the scan sheet. All multiple choice questions are worth 1 mark each. The possibility of conflicts of interest between the shareholders and the management of the firm is___________: the agency problem, the regulatory dialectic, corporate governance, financial engineering, none of the above, please fill in the blank. I and iii only: all of the above, please fill in the blank. The firm also has half a million preferred shares outstanding selling for each. Each bond has a face value of , and is currently selling for 114% of the face value. Ve = (1. 5m*142 = 213m), vp=(. 5m*82=41m), vd = 100,000*1140=114m. Please use the following information to answer the next six questions. Manship inc. has to make a lease versus buy decision. The new system costs million to purchase and has a.
