Agency Costs of Free Cash Flow‚ Corporate Finance‚ and Takeovers Michael C. Jensen Harvard Business School MJensen@hbs.edu Abstract The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities. The theory developed here explains 1) the benefits of debt in reducing agency
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Term paper on ESOP Submitted by Hitesh.K.R (1pi11mba59) Finance Cohart 1 What is an ESOP? ESOP stands for Employee Stock Ownership Plan and is an employee benefit plan which makes the employees owners of stock in that company. An ESOP is required by law to invest primarily in the stock of the sponsoring employer. An ESOP is a qualified defined contribution plan and is similar to profit sharing plans. The employer can use it as a conduit for borrowing money from a bank or other
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Roman Almalbis Spouses Felix Chingkoe and Rosita Chingkoe (Petitioner) vs. Spouses Faustino Chingkoe and Gloria Chingkoe (Respondents) G.R. No. 185518 April 17‚ 2013 Facts: Respondents are registered owners of real property. They permitted petitioners to inhabit the subject property. Through the intercession of their mother‚ Faustino agreed to sell his property to Felix‚ on condition that the title shall be delivered only after payment of the full purchase price. They agreed that the incomplete
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The DTMF keypad is laid out in a 4×4 matrix‚ with each row representing a low frequency‚ and each column representing a high frequency. Pressing a single key (such as ’1’ ) will send a sinusoidal tone for each of the two frequencies (697 and 1209 hertz (Hz)). The original keypads had levers inside‚ so each button activated two contacts. The multiple tones are the reason for calling the system multifrequency. These tones are then decoded by the switching center to determine which key was pressed.
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Cost) 1. You are planning a trip to Ottawa‚ which is 400 miles. Except for the cost‚ you are completely indifferent between driving and taking the bus. The bus ticket costs $180. You do not know how much it would cost to drive your car‚ so you call Hertz for an estimate. The person you speak with tells you that for your make of car‚ the costs of a typical 10‚000 mile driving year are as follows: Insurance $2000 Financing (Interest) 1500 Fuel & Oil 1500 Maintenance 2000 Total $7000
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distance between identical points on successive waves. Wavelength is usually expressed in units of meters‚ centimeters‚ or nanometers. The frequency is the number of waves that pass through a particular point in 1 second. Frequency is measured in hertz (Hz). Last by not least‚ amplitude is the vertical distance from the midline of a wave to the peak. X-rays are very fast moving‚ small energetic particles. There are three main types of rays that are produced by decay‚ or breakdown‚ of radioactive
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Making the Sales Presentation and Demonstration Persuasive communication is at the heart of the selling process‚ and the sales presentation/demonstration is the critical center stage or “showtime” for salespeople. After asking the customer qualifying questions to uncover specific needs‚ the salesperson presents the products and services that will best satisfy those needs; highlights their features‚ advantages‚ and benefits; and stimulates desire for the offerings with a skillful demonstration. Prospects
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Hughes vs. TWA Those who are familiar with Trans World Airlines know that the name Howard Hughes is synonymous with TWA. Some might even go as far as to call the defunct company “Howard Hughes” airline. Hughes‚ a man who at one time owned 78% of TWA’s stock is said to not only own TWA‚ but love the company more than any of his other possessions. This brings one to wonder how a man who was so obsessed by this particular company end up going to court against that company. This paper will inform
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Computers are one of the most important inventions ever. If computers had not been invented‚ technology would not be developed to its current state. Since the computers invention‚ society has changed drastically. Computer technology is so helpful‚ that it is even used to create newer‚ better computer equipment. Almost everything today is linked in some way‚ to computers. Before computers were invented‚ very little was known about outer space. With the technology we have now‚ we are learning
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Fifth largest vehicle manufacturer in the world and the second in the U.S. with a total (Sales 2010) of 4‚988‚031 vehicles manufactured including Cars‚ land craft vehicles (LCV)‚ Heavy Commercial Vehicles (HCV) and Heavy Buses. Ford Motor merges with Hertz Rent-A-Car‚ the world’s leading vehicle renting organization‚ operates from approximately 8‚100 locations in 143 countries worldwide. Ford Motor Company is in ten place in 2011 Fortune 500 list (Us)‚ with Revenues of (Millions) 128‚954.0 and Profits
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