1. What is an advantage of the corporate form?
2. What is the major disadvantage of the corporate form?
3. What is agency cost and between what two stakeholders does this occur?
4. What are two things that can be done to reduce or mitigate agency cost?
5. What is the difference between a public and private corporation?
6. What is the title of the top financial officer in most corporations?
7. Give two reasons managers should act in the shareholder’s interest?
8. What is the financial goal for most publically traded corporations?
9. How would you find the value of a$100 perpetuity with at required return of 10%?
10. Where would you find an annuity in reality?
11. Is the annual percentage rate or (APR) an effective rate or a simple rate of interest?
12. What is the difference between the present value and the net present value?
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