You have just been employed as the New chief executive officer of a medium sized company that is listed on the Ghana stock exchange. At the maiden board meeting,the chairman advised you and your management team to avoid what he termed as "Agency Problem" Explain the term "agency proAm blem " and identify (4) way by which shareholders can deal with it.
You have just been employed as the New chief executive officer of a medium sized company that is listed on the Ghana stock exchange. At the maiden board meeting,the chairman advised you and your management team to avoid what he termed as "Agency Problem"
Explain the term "agency proAm blem " and identify (4) way by which shareholders can deal with it.
(B)Suppose you are expecting to receive a million british pounds in six months,and you agree to a forward trade to exchange your pounds for dollars.IF the spot exchange rate and the 180-day forward rate in terms of dollars per pound are$1.5861=£1 and$1.5832=£1,respectively,how many dollars will you get in six months?Is the pound selling at a discount or a premium relative to the dollar?
(C)suppose the british pound U-S dollar exchange rate is currently So=£.50.Further suppose that the inflation rate in Britain is predicted to be 10percent over the year ,coming year and(for the moment)the inflation rate in the United States is predicted to be zero.What do you think the exchange rate will be in a year
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