Which one of the following actions by a financial manager is most apt to create an agency problem? a) refusing to borrow money when doing so will create losses for the firm b) refusing to expand the company if doing so will lower the value of the equity c) agreeing to pay bonuses based on the market value of the company's stock rather than on its level of sales d) increasing current profits when doing so lowers the value of the company's equity

Which of the following statements is correct? a. two firms with identical sales and operating costs but with different amounts of debt and tax rates will have different operating incomes by definition. b. free cash flow (fcf) is, essentially, the cash flow that is available for interest and dividends after the company has made the investments in current and fixed assets that are necessary to sustain ongoing operations. c. retained earnings as reported on the balance sheet represent cash and, therefore, are available to distribute to stockholders as dividends or any other required cash payments to creditors and suppliers. d. if a firm is reporting its income in accordance with generally accepted accounting principles, then its net income as reported on the income statement should be equal to its free cash flow. e. after-tax operating income is calculated as ebit(1 - t) + depreciation.

Differentiate between the trait, behavioral, and results-based performance appraisal systems, providing an example where each would be most applicable.

According to management education expert ashok rao, companies can increase their profitability by through careful inventory management. a. 5% to 10% b. 10% to 25% c. 20% to 50% d. 75%