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10 Cards in this Set
- Front
- Back
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Traditional goal of a firm?
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Maximize Shareholder Wealth
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Alternative goal of a firm?
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Balance interest of shareholders and stakeholders.
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Stakeholder
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is a person/group/entity who has interest in company who is not a shareholder or owner.
employees, customers, community, suppliers |
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Shareholders
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Own stock of a company
Stockholder |
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Agent
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CEO
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Principle
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Shareholder
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Agency Problem
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When an agents(the one CEO) has a desire to help his job vs help the shareholder(principle)
ie. Over pay for a new business would hurt shareholder. |
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Average Tax Rate
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Total taxes paid diveded by total taxable income
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Marginal tax rate
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Amount of tax payable on the next dollar earned
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Primary Market
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Original sale of securities by governments and corporations.
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