PURPOSE
To evaluate the corporate finance concept based on relevant financial information as well as supported by the foundation of corporate finance theories.
REQUIREMENT
Read and comprehend the following questions provided. Answer the questions using relevant information given in the questions and relevant corporate finance theories.
a) In recent years, large financial institutions such as mutual funds and pension funds have become the dominant owners of stock in United States, and these institutions are becoming active in corporate affairs. What are the implications of this trend to agency problems and corporate control?
b) Discuss why is the goal of financial management to maximize the current share price of the company’s stock? In others words, why isn’t the goal to maximize the future share price?
Assignment Format:
a. Each question answer must contain 750-1250 words and must have introduction, body and conclusion .
b. Use double space and 12-point of Times New Roman font.
c. Provide reference using the American Psychological Association (APA) format
d. References should be latest (year 2005 onwards)