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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Comedy should subvert but Pygmalion just confirms the conformist message that class is fixed and shouldn’t be fluid. Discuss. In Pygmalion‚ the time era is Edwardian‚ and class can be seen as both fixed and fluid. We can see that Shaw’s intentions are clear‚ underlying the play‚ Shaw’s message is clear that the class system is flawed‚ and that Eliza’s uprising proves this through her strong‚ subversive attitude. An example of Shaw suggesting that class is fluid in Pygmalion is through Doolittle’s
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or wrong‚ it is your opinions. I am pro gun‚ I love guns‚ and I think they should have gun control‚ but to an extent. So‚ I am in between. Some questions that come into my head are‚ How much gun violence is in the USA? And What gun laws currently exist? The first question I wonder is How much gun violence is in the USA? According to The Atlantic‚ There were 8‚583 homicides by firearms in 2011‚ out of 12‚664 homicides total‚ according to the FBI. Yes‚ 8‚583 deaths by firearms is high‚ but how many
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Give a description of fixed mindset vs. growth mindset as you understand it. A person with a fixed mindset exhibits behaviors that portray the individual as a one track mind. A fixed mindset causes one to only see life from one perspective. A fixed minded individual lacks maturity in learning how to adapt to the changes of life and the challenges it brings. Growth mindset allows one to be open for perspectives on a situation in order to develop a well thought out strategy to solve the challenges
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Tales of the mythical and magical mermaid have been dismissed as rumors; however‚ these majestical creatures do exist. Cameras have caught photos and even videos of these creatures stranded on beaches and swimming dignified through the ocean. You may argue that these images are fabricated but there are scientist who dedicate their lives and can speak surely about the existence of mermaids. Scientist who are skilled in the use of sonar. Scientists who state that mermaids are seismically sensitive
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Definition and explanation of mixed or semi variable cost: A mixed cost is one that contains both variable and fixed cost elements. Mixed cost is also known as semi variable cost. Examples of mixed costs include electricity and telephone bills. A portion of these expenses are usually consists line rent. Line rent normally is fixed for each month. Variable portion consists units consumed or calls made. The relationship between mixed cost and level of activity can be expressed by the following equation
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File COST ACCOUNTING “An Introduction to Cost Terms and Purposes” Assistant Lecturer: M. Ryan Firmansyah Problem 1 (Quiz 1 September 8‚ 2009) Consider the following costs that were incurred during the current year. Evaluate whether the cost is: 1. A product cost or a period cost 2. Variable or fixed in terms of behavior 3. For the product cost‚ whether it is classified as direct material‚ direct labor‚ or manufacturing overhead No. 1 Descriptions Product Cost Period Variable Fixed DM Product
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correlate directly with the form of the objective reality. Another form of realism known as “scientific realism” takes a different approach by assuming that the universe exists in a way that can be described by science (the ability to describe an object through science verifies its existence) and that scientific objects and knowledge exist independently of the mind. On the opposite side of the spectrum we have “anti-realism” which challenges the existence of an objective existence or reality. Anti-realists
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The historical cost accounting is an accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition. It is usually used in combination with other measurement bases. For example‚ inventories are usually carried at the lower of cost and net realizable value‚ on the other hand marketable securities are usually carried at market value‚ and entities prefer to carry pension liabilities at their present value. The main advantage of using
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Published in Jurnal Ekonomi‚ Universitas Tarumanagara‚ Indonesia (Economic Journal‚ Tarumanagara University‚ June 2004) An Econometric Analysis of the Short Run Philips Curve: Is it still relevant in today’s context? Enrico Tanuwidjaja∗ National University of Singapore‚ Department of Economics E-mail: g0305812@nus.edu.sg May 2004 Abstract The Phillips curve is generally been estimated in a linear framework‚ which implies a constant relationship between inflation and unemployment. Lately‚ there
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