When the interests of the owners of a firm do not coincide


1. Calculate the commercial interest of

a) $3,100 for 125 days at 9% semi-annually

b) $2,500 from September 8 to February 12 of the following year at 4% quarterly

c) $6,640 for 9 business months and 25 days at 3.1% bi-monthly

d) $ 1,600 from January 13 to October 20 of the same leap year at 0.94% per month

e) $ 4,000 for 8 months at 0.88% monthly

f) $1,350 for 2 months at 18% yearly

2. That vacation package to Barbados three years from now has a price of $4,100, not including airfare. If you can earn 9% per year in an investment account, what amount must you deposit in that account today in order to have $4,100 at the end of three years?

$1,253.82

$3,450.89

$3,761.47

$3,165.95

$4,088.95

3. When the interests of the owners of a firm do not coincide with the interests of the managers of the firm, the literature of business calls this _______.

an organizational disconnect.

a behavioral problem.

an agency problem.

territorial issues.

the Dilbert effect.

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Financial Management: When the interests of the owners of a firm do not coincide
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