Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors. Introduction: Corporate management: It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

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Answer 1

Question

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

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Students have asked these similar questions

Eccles Inc., a zero-growth firm, has an expected EBIT of $100.000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. If the effective personal tax rates on debt income and stock income are Td = 25% and TS = 20% respectively, what is the value of the firm according to the Miller model (Based on the same unlevered firm value in the earlier question)? a. $475,875 b. $536,921 c. $587,750 d. $623,050 e. $564,167

Refer to the data for Eccles Inc. earlier. If the effective personal tax rates on debt income and stock income are Td = 25% and TS = 20% respectively, what is the value of the firm according to the Miller model (Based on the same unlevered firm value in the earlier question)? a. $475,875 b. $536,921 c. $587,750 d. $623,050 O $564,167

Warren Supply Inc. wants to use debt and common equity for its capital budget of $800,000 in the coming year, but it will not issue any new common stock. It is forecasting an EPS of $3.00 on its 500,000 outstanding shares of stock and is committed to maintaining a $2.00 dividend per share. Given these constraints, what percentage of the capital budget must be financed with debt? a. 33.84% b. 37.50% c. 32.15% d. 30.54% e. 35.63%

Answer 2

Question

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

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Answer 3

Question

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

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Answer 4

Question

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

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Answer 5

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Answer 6

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Answer 7

Chapter 17, Problem 1DQ

Summary Introduction

To explain:Â The reason that increasing sensitive of corporate management towards the wishes of the large institutional investors.

Introduction:

Corporate management:

It is the managerial function of administrating and directing. It generally involves business tasks performed after strategic planning and management of the effective utilization of the resources of the company.

Answer 8

Expert Solution & Answer

Answer to Problem 1DQ

The reason behind the increasing sensitivity of corporate management to the wishes of large institutional investors is the fear of shareholders using their voting rights against the management during merger or takeover meetings.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Large institutional investors are the shareholders of a company with voting rights. The sensitivity and inclination of corporate management toward them primarily arises out of fear of the misuse of voting rights.

For example, if shareholders remain unsatisfied with the operations of the management and the returns of the company, they might use their voting rights to defenestrate the current management or may vote in favour of a corporate raider causing the intentional and hostile takeover of the company.

Answer 12

Ch. 17 - Prob. 1DQ Ch. 17 - Prob. 2DQ Ch. 17 - Prob. 3DQ Ch. 17 - Prob. 4DQ Ch. 17 - Prob. 5DQ Ch. 17 - Prob. 6DQ Ch. 17 - Prob. 7DQ Ch. 17 - Prob. 8DQ Ch. 17 - Prob. 9DQ Ch. 17 - Why is the cumulative feature of preferred stock...

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Answer to Problem 1DQ

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