Glen, the owner of a fast expanding start-up, wants to match performance criteria to the ways the managers contribute to goal achievement. He decides to do this by awarding his managers incentive pay based on a set of performance measures associated with his company’s long-term and short-term goals. In order to do this, Glen should

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and bondholders? a) compensating managers with stock options, b) financing risky projects with additional debt, c) the threat of hostile takeovers, d) the use of covenants in bond agreements that limit the firm's use of additional debt and constrain managers actions, e) abolishing the security and exchange commission

Technology corp. is considering a $238,160 investment in a new marketing campaign that it anticipates will provide annual cash flows of $52,000 for the next five years. the firm has a 6% cost of capital. what should the analysis indicate to the firm's managers?

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr