Shareholder Value

One key objective of the firm is to increase shareholder value, which is measured by the price of the stock. The company’s management plays a vital role in accomplishing this objective. Examine the agency relationship of managers and stockholders: 1.Describe the agency conflict that is created in corporations 2.Identify the stakeholders involved in an agency conflict 3.Provide three strategies to mitigate this conflict between the relevant parties DQ2W6 - Capital Structure Capital Structure For a company to exist it needs money or capital. This capital is referred to as the cost of capital. The corporation needs to decide how and in what forms it will raise the capital. A. Describe the term capital structure B. Identify and define each of its components C. Clearly articulate the debt to equity relationship in the capital structure    

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