As Mergers, Acquisition, And Restructuring Have Increased In Importance, Agency Theory Has Become More Importa?

nt in assessing whether:
a…a stock repurchase should be undertaken.
b…shareholder goals are truly being achieved by managers in the long run.
c…managers are actually agents or only employees of the firm
d…managers and owners are actually the same people with the same interests.
2..In developing data for accounts receivable for the pro forma balance sheet, the analyst is most likely to turn to the ______.
a. pro forma income statement
b. cash budget
c. prior balance sheet
d. statement of retained earnings
3…When developing a credit scoring report, many variables would be considered. Which of the following best represent the major factors Dun & Bradstreet would examine?
A. ..The age of the management team, the dollar amount of sales, net profits, and long-term debt.
B… The company’s cash balances, return on equity, and its average tax rates.
C… The financial statements, satisfactory or slow payment experiences, negative public records (suits, liens, judgments, bankruptcies).
D… The age of the company, the number of employees, the level of current assets.