Richard grassgreen was executive vice president and then president and chief operating officer of kinder-care, inc., the largest proprietary provider of child care in the country. the company was restructured in 1989 and changed its name to the enstar group, inc. between 1985 and 1990, while grassgreen served as the corporations investment manager, he invested millions of dollars of company money in junk bond deals with michael milken, and he secretly retained some $355,000 in commitment fees. when the corporation discovered this, grassgreen repaid the corporation. it sued him to recover any compensation paid him over the five-year period during which the secret payments were made, some $5,197,663. grassgreen defended that his conduct caused little, if any, damage to the corporation because the corporation did not lose any money on any of the investments for which he received personal fees. decide. [enstar group, inc. v. grassgreen, 812 f. supp. 1562 (m. d. ala.)]

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

%of the world's population controls approximately % of the world's finances (the sum of gross domestic products)" quizlket

Which of the following statements is true of unsought products? as compared to convenience products, unsought products are purchased more frequently. unsought products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. a life insurance policy is an example of an unsought product. unsought products have strong brand identification for which a significant group of buyers is willing to make a special purchase effort. unsought products are those products purchased for further processing or for use in conducting a business.