Consider the Decision in Agrium Inc

question 53

Multiple Choice

Consider the decision in Agrium Inc. v. Hamilton. What did the Court find?

• A) Hamilton's action did not constitute oppressive conduct.
• B) Hamilton was liable for fraudulent misrepresentation.
• C) Hamilton, as a director and majority shareholder of Flagstaff, was not in a fiduciary relationship with Agrium, a minority shareholder.
• D) Hamilton was liable for insider trading.
• E) Hamilton, as a director and majority shareholder of Flagstaff, was in a fiduciary relationship with Agrium, a minority shareholder.

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, representing the compensation for their risk.

SML Approach

Security Market Line approach; a graphical representation of the expected return of investments as a function of their systematic, non-diversifiable risk.

Cost of Capital

The rate of return that a company must earn on its investments to maintain its market value and satisfy its shareholders or debtholders.

Future Inflation

Anticipated increase in the price level of goods and services in the future, affecting purchasing power.