Chapter 1 E1-4. The Role and Environment of Managerial Finance 11 Agency Costs Answer: Agency costs are the costs borne by stockholders to maintain a governance structure that ensures against dishonest acts of management‚ and gives managers the financial incentive to maximize share price. One example of agency costs is stock options‚ which are used to provide an incentive for managers to work diligently for the benefit of the firm. Tips are similar to stock options in that they
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Chapter 1 Solutions to Practice Questions Questions for Review 2. The opportunity cost of seeing a movie includes the monetary cost of admission plus the time cost of going to the theater and attending the show. The time cost depends on what else you might do with that time; if it’s staying home and watching TV‚ the time cost may be small‚ but if it’s working an extra three hours at your job‚ the time cost is the money you could have earned. 4. Policymakers need to think about
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Many solutions exist to reduce the negative externalities of plastic bags. The three main solutions available are taxations on plastic bags‚ bans on plastic bags and subsidies to improve methane capture technologies. The following provides a discussion on each of the solutions‚ including the advantages and disadvantages of each solution: Solution 1: Taxation on plastic bags Imposition of a tax equal to the cost of the negative externality can internalise the externality amongst consumers and
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COT5405 Analysis of Algorithms Midterm 1 Solution Summer 2012 June 11 In all cases explain clearly and as succinctly as possible. Problem 1 10 Pts Answer: n T (n) = 2T ( n ) + log n 2 2 n = 4T ( n ) + logn n + log n 4 2 2 2 n = 4T ( n ) + log nn−1 + log n 4 2 2 = ... ∑log2 n 1 = nT (1) + n i=1 i ∑n Since i=1 1 → ln n‚ T (n) ∈ Θ(n log log n) i Problem 2 20 Pts Answer: The general idea is to use the technique similar to quick sort‚ by doing partition on both lids and cups. First we pick
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Chapter 1 Data and Statistics Learning Objectives 1. Obtain an appreciation for the breadth of statistical applications in business and economics. 2. Understand the meaning of the terms elements‚ variables‚ and observations as they are used in statistics. 3. Obtain an understanding of the difference between categorical
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Programming - Minimisation Special cases Simplex maximisation 1. Innis Investments manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client’s needs. For a new client‚ Innis has been authorised to invest up to $1.2 million in two investment funds: a stock fund and a money market fund. Each unit of the stock fund costs $50 and provides an annual rate of return of 10%; each unit of the money market fund costs $100 and provides an annual rate
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evidence gathering‚ void of professional judgment. From the point of view of both the profession and the users of auditing services‚ there is probably a greater harm from defining authoritative guidelines too specifically than too broadly. 2-16 a. (1) b. (2) c. (3) d. (3) 2-20 a. Rossi and Montgomery’s primary ethical consideration is their professional competence to perform all of the audit work for filing with the SEC. In addition‚ if Rossi and Montgomery have performed bookkeeping services
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Chapter 1 Managerial Accounting and Cost Concepts Solutions to Questions 1-1 The three major elements of product costs in a manufacturing company are direct materials‚ direct labor‚ and manufacturing overhead. 1-2 a. Direct materials are an integral part of a finished product and their costs can be conveniently traced to it. b. Indirect materials are generally small items of material such as glue and nails. They may be an integral part of a finished product but their costs can be
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The Story of Solutions‚ the main focus was to shift attention from making more and more for the economy to making the economy better. It was described in the video that in order to make the economy better‚ we need to focus our attention on sustainability. One example given was banning plastic bags. Two methods were given on how to accomplish said task—the old method and the new method. The old method was to hand out gift cards to people after they recycled a certain amount of bags. While that
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5 Solution Preparation 1. Why should the solutions be prepared with 0.10M HCl used as solvent? a. What will happen to Fe3+ if the solution was not prepared using 0.10M HCl? b. Give the balanced equation for the 1st hydrolysis of Fe3+. c. What is the color of the product of 1st hydrolysis of Fe3+? d. What is the effect of the product of 1st hydrolysis to the absorbance of the solution? Determination of Analytical Wavelength 2. Why should the solution with
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