WPC 150 Study guides, Class notes & Summaries
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WPC 150: Finance Questions & Answers./ 2024/25 EXAM PREDICTION QUESTIONS/
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WPC 150: Finance Questions & 
Answers. 
Costs associated with the conflicts of interest between the managers and the shareholders of a 
corporation are called: 
agency costs. 
One way to mitigate agency problems is to include shares of company stock in executive compensation 
packages. 
True 
Present value is defined as: 
future cash flows discounted to the present by an appropriate discount rate. 
Understanding basic principles of finance is important for 
All of the above 
If stock markets ...