财务管理基础课后习题解答大全

财务管理基础课后习题解答大全内容摘要：

or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. b. The reduction in dividends, in order to allow increased reinvestment, can be consistent with maximization of current market value. If the firm has attractive investment opportunities, and wants to save the expenses associated with issuing new shares to the public, then it could make sense to reduce the dividend in order to free up capital for the additional investments. c. The corporate jet would have to generate benefits in excess of its costs in order to be considered stockprice enhancing. Such benefits might include time savings for executives and greater convenience and flexibility in travel. d. Although the drilling appears to be a bad bet, with a low probability of success, the project may be valuemaximizing if a successful oute (although unlikely) is potentially sufficiently profitable. A oneinfive chance of success is acceptable if the payoff conditional on finding an oil field is 10 times the costs of exploration. Est time: 06–10 21. a. Increased market share can be an inappropriate goal if it requires reducing prices to such an extent that the firm is harmed financially. Increasing market share can be part of a wellreasoned strategy, but one should always remember that market share is not a goal in itself. The owners of the firm want managers to maximize the value of their investment in the firm. b. Minimizing costs can also conflict with the goal of value maximization. For example, suppose a firm receives a large order for a product. The firm should be willing to pay overtime wages and to incur other costs in order to fulfill the order, as long as it can sell the additional product at a price greater than those costs. Even though costs per unit of output increase, the firm still es out ahead if it agrees to fill the order. c. A policy of underpricing any petitor can lead the firm to sell goods at a price lower than the price that would maximize market value. Again, in some situations, this strategy might make sense, but it should not be the ultimate goal of the firm. It should be evaluated with respect to its effect on firm value. d. Expanding profits is a poorly defined goal of the firm. The text gives three reasons: (i) There may be a tradeoff between accounting profits in one year and accounting profits in another year. For example, writing off a bad investment may reduce this year’s profits but increase profits in future years. Which year’s profits should be maximized? Chapter 01 Goals and Governance of the Corporation 17 169。 2020 by McGrawHill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. (ii) Investing more in the firm can increase profits, even if the increase in profits is insufficient to justify the additional investment. In this case the increased investment increases profits but can reduce shareholder wealth. (iii) Profits can be affected by accounting rules, so a decision that increases profits using one set of rules may reduce profits using another. Est time: 06–10 22. The contingency arrangement aligns the interests of the lawyer with those of the client. Neither makes any money unless the case is won. If a client is unsure about the skill or integrity of the lawyer, this arrangement can make sense. First, the lawyer has an incentive to work hard. Second, if the lawyer turns out to be inpetent and loses the case, the client will not have to pay a bill. Third, the lawyer will not be tempted to accept a very weak case simply to generate bills. Fourth, there is no incentive for the lawyer to charge for hours not really worked. Once a client is more fortable with the lawyer, and is less concerned with potential agency problems, a feeforservice arrangement might make more sense. Est time: 06–10 23. The national chain has a great incentive to impose quality control on all of its outlets. If one store serves its customers poorly, that can result in lost future sales. The reputation of each restaurant in the chain depends on the quality in all the other stores. In contrast, if Joe’s serves mostly passing travelers who are unlikely to show up again, unsatisfied customers pose a far lower cost. They are unlikely to be seen again anyway, so reputation is not a valuable asset. The important distinction is not that Joe has one outlet while the national chain has many. Instead, it is the likelihood of repeat relations with customers and the value of reputation. If Joe’s were located in the center of town instead of on the highway, one would expect his clientele to be repeat customers from town. He would then have the same incentive to establish a good reputation as the chain has. Est time: 01–05 24. Traders can earn huge bonuses when their trades are very profitable, but if the trades lose large sums, as in the case of Barings Bank, the trader’s exposure is limited. This asymmetry can create an incentive to take big risks with the firm’s (., the shareholders’) money. This is an agency problem. Est time: 01–05 Chapter 01 Goals and Governance of the Corporation 18 169。 2020 by McGrawHill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 25. The director is mistaken. The risk of the project is not determined by the borrowing rate from the bank. The opportunity。