BU283 Study Guide - Final Guide: Zero-Coupon Bond, Efficient-Market Hypothesis, Interest Rate Risk
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Managers of corporations should act in ways that: maximize shareholder wealth. Agency costs refer to: the costs of any conflicts of interest between stockholders and management. ____refers to the way an organization is formed, structured and controlled: governance. Information asymmetry means that all market participants have exactly the same information set with which to make decisions. In market a, widgets are selling for . In market b, identical widgets are selling for . Recognizing the price difference, you buy widgets from market a and sell them in market b. As you increase the interest rate, what happens to the curve: steeper and convex to the origin. What was the first speculative bubble: dutch tulip bubble. Which of the following are financial decision: determining whether to buy or lease a car, planning to pay for college, retirement planning. Determining how the company will fund its operations is called the ___ decision: capital structure.
