If a Company Has Had an Agency Problem That Is

question 34

Multiple Choice

If a company has had an agency problem that is reflected in a poor performing share for a long period of time, then the company may become a target of _________________.

• A) an ASIC investigation.
• B) a corporate raider.
• C) a tax department investigation.
• D) an insolvency lawyer.

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Definitions:

Dividend Per Share

The amount of dividend that a company pays out for each share of its stock.

Rate Of Return

Accumulation or reduction in the investment value over a chosen interval, denoted as a percentage of the investment's root cost.

Outstanding Shares

The total number of shares of stock that are currently owned by investors, including restricted shares owned by the company’s officers and insiders.