
(a)
To explain: T is ordinary shareholder or not.
Direct Stockholder’s Intervention: Most of the shares are owned by institutional investors such as insurance companies pension funds, and rather than individual. These institutional investor control over the firm’s operation and oversee the management operation.
(b)
To explain: The manager should vote its shares or should pass those votes on a pro-rata basis, back to its own shareholders.
Direct Stockholder’s Intervention: Most of the shares are owned by institutional investors such as insurance companies pension funds, and rather than individual. These institutional investor control over the firm’s operation and oversee the management operation.

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Chapter 1 Solutions
Fundamentals of Financial Management, Concise Edition
- Correct solnarrow_forwardsolve itarrow_forward6. Calculate the price of a dividend paying stock using the following information, assuming the price is equal to the present value of all future dividends one will receive from owning the stock. (Hint: treat the stock as a growing perpetuity) Dividend $4.50 Growth rate 2% Required return 12% *arrow_forward
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- Finance question. None please listen if you deslike my answer i will give your. Also if you will give more deslike bartleby site will be shut down.arrow_forwardCorrect solnarrow_forwardplease listen if you deslike my answer i will give in your answer. Bartleby also changed the rule for this change we all are responsible so please don't do this. Also if we will give more deslike bartleby site will be shut down.arrow_forward
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
