PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Question
Chapter 14, Problem 6PS
Summary Introduction
To discuss: The number of directors that comes to the election every year.
Summary Introduction
To discuss: Whether SA will be more or less vulnerable to a takeover that is hostile if they are in a classified board.
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Students have asked these similar questions
Compliance
A.while investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the securities Act of 1933 how does this influence you as a potential employee and as a shareholder? Be sure to reference any applicable statues of laws
B.You know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant?
Compliance
while investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the securities Act of 1933 how does this influence you as a potential employee and as a shareholder? Be sure to reference any applicable statues of laws
You know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant?
Which of the following factors would weaken corporate governance?
A.Ensuring that the rotation of directors is such that the average incumbency ensures that all diretors are appointed for a long period so as to enhance their familiarity with the company's policies and procedures
B.Stipulating the maximum number of directorship a director can commit to
C.Ensuring the CEO is not the chairman of the board of directors
D.The appointment of independent directors to the audit committee
Chapter 14 Solutions
PRIN.OF CORPORATE FINANCE
Ch. 14 - Terminology Fill in the blanks, using the...Ch. 14 - Prob. 2PSCh. 14 - Sources of funds True or false? a. Net stock...Ch. 14 - Prob. 4PSCh. 14 - Company ownership What do we mean when we say that...Ch. 14 - Prob. 6PSCh. 14 - Prob. 7PSCh. 14 - Prob. 8PSCh. 14 - Corporate debt Which of the following features...Ch. 14 - Financial markets and intermediaries. True or...
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Similar questions
- The success of any organization heavily depends on the efficiency of the corporate governance. The only way to know the status of success or failure can be found _________________. a. None of the options b. By observing at the number of directors in the board of directors c. By providing a complete internal control report d. By looking at the financial results of the corporationarrow_forwardCorporate management and the Board of Directors fulfil a vital role to ensure good corporate governance within a company. Which of the reasons, listed below, has been a major contributing factor to corporate governance scandals? Question 16 options: Changes to government regulations regarding public reporting and disclosure Shareholders have dumped the company's stock Unclear separation of ownership and management Maximizing current share holder value tends to focus on the value near termarrow_forwardV5. You have been hired as corporate governance advisor by the Palestinian Capital Market Authority and have been asked to indicate whether the following actions ‘Increase Management Power, ‘Increase Stockholder Power, or ‘No Effect’ and give a very short rationale for each answer. PADICO decides to expand its board of directors from 10 members to 20 members and allows the CEO to select the new directors.arrow_forward
- Which of the following statements are true regarding corporations? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. ✔The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. ? It has many of the same rights as an individual. ?Stockholders do not have the power to bind the corporation to contracts. ? Stockholders are expected to hire and fire key executives. ? Owners are personally liable for corporate debts. ? It is a separate legal entity. ? Owners are not agents of the corporation.arrow_forwardExercise 1 Below is a summary of the SEC corporate governance requirements of companies publicly-listed in the stock exchange. For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. Boards need to consist of at least 3 independent directors or 1/3 of the board which is higher. b. Boards need to hold regular executive sessions of independent directors without management present. c. Boards must have a corporate governance committee composed at least of 3 independent directors. d. The corporate governance committee must have a written charter that addresses the committee’s purpose and responsibilities, and there must be annual performance evaluation of the committee. e. Boards must have an audit committee with a minimum of three independent members. f. The audit committee must have a written charter that addresses the committee’s purpose and responsibilities, and the committee must produce an audit committee report: there…arrow_forwardFollowing is a summary of the NYSE corporate governancerequirements of companies listed on this stock exchange.For each requirement, state how it is intended to help to addressthe risk of fraud in publicly traded organizations.a. Boards need to consist of a majority of independent directors.b. Boards need to hold regular executive sessions of independentdirectors without management present.c. Boards must have a nominating/corporate governance committeecomposed entirely of independent directors.d. The nominating/corporate governance committee must have awritten charter that addresses the committee’s purpose andresponsibilities, and there must be an annual performanceevaluation of the committee.e. Boards must have a compensation committee composedentirely of independent directors.f. The compensation committee must have a written charterthat addresses the committee’s purpose and responsibilities,which must include (at a minimum) the responsibility toreview and approve corporate goals…arrow_forward
- NYSE corporate governance requirements of companies listed on this stock exchange,, state how it is intended to help to address the risk of fraud in publicly traded organizations. 1. Boards must have an audit committee with a minimum of three independent members. 2.The audit committee must have a written charter that addresses the committee’s purpose and responsibilities, and the committee must produce an audit committee report; there must also be an annual performance evaluation of the committee.arrow_forwardYou are offered a job you know that accepting this job may eventually lead to a promotion into the role of the financial manager. As the potential financial manager, what federal and shareholder requirements would you need to be familiar with in order to ensure that you are being completely compliant? While investigating the shares offered to you by your potential boss, you discover that the company you are considering working for is not registered as required under the Securities Act of 1933. How does this influence you as a potential employee and as a potential shareholder relative to any applicable statutes or laws?arrow_forward45-The success of any organization heavily depends on the efficiency of the corporate governance. The only way to know the status of success or failure can be found O a. By providing a complete internal control report O b. None of the options O c. By looking at the financial results of the corporation O d. By observing at the number of directors in the board of directorsarrow_forward
- Sarbanes-Oxley Act of 2002 requires which of the following report to be prepared by the management of the company? Oa. A report evaluating the probability that the company will remain in business. Ob. A report assessing the market value of the company's current stock price. Oc. Areport identifying the competency of the company's board of directors. Od. Areport showing management's assessment of internal control.arrow_forward2. What business risks does P&G face that may threaten its ability to satisfy stockholderexpectations? What are some examples of control activities that the company could use toreduce these risks? (Hint: Focus on page 28 of the annual report).arrow_forwardWhich of the following actions would the Board of Directors have to have a shareholder vote in order to enact? A. Hiring a new CEO B. Approving CEO Compensation over $1M C. Selling the company to a holding company D. Purchasing a company as a subsidiaryarrow_forward
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