Business finance | Business & Finance homework help

Question 1 : As companies grow in size, it is inevitable for the shareholders to hire management to run the operations of the business. The entire team of management, starting from the CEO and other top-level management, all the way to the middle and bottom level management are expected to perform towards the growth of the business. Since the shareholders of large companies are scattered across geographies, they appoint certain members as representatives who are elected to represent them on the company board. The board of directors of a company, along with the Chairman, are expected to keep the actions of the management in check. 

Explain the above in context of agency theory and corporate governance. What can companies do to ensure adequate corporate governance? 

Question 2 : Mr. Morris had $100,000 in his account. Using this fund, he made a portfolio of two NYSE listed stocks – Johnson and Johnson (J&J) and IBM on 01 Jan 2019 in the ratio of 60:40, i.e. 60% funds in J&J & 40% funds in IBM. 

The daily stock data of both stocks can be found on market websites such as Download daily data for 1 year for the dates of your choice Using the stock data of the two stocks, you are required to explain the below concepts and then compute for the given stocks: 

a. Annual return of both J&J and IBM.  

b. Annualized standard deviation of returns of both J&J and IBM  

c. Correlation coefficient of returns of J&J and IBM. What does this correlation coefficient signify about the correlation of the two stocks and corresponding decision from an investor? 

d. Portfolio return of the portfolio of two stocks. 

e. Portfolio risk (standard deviation) of the portfolio of two stocks.  

f. Critically analyze your investment decision in these two companies . 

Given an option, would you like to invest in any other company? Or would you like to have a different ratio of investment in the two? 

Question 3: Your firm’s geologists have discovered a small oil field in New York’s Westchester County. The field is forecasted to produce a cash flow of C1 $2 million in the first year. You estimate that you could earn an expected return of r 12% from investing in stocks with a similar degree of risk to your oil field. Therefore, 12% is the opportunity cost of capital. What is the present value? The answer, of course, depends on what happens to the cash flows after the first year. Calculate present value for the following cases: 

a. The cash flows are forecasted to continue for 20 years only, with no expected growth or decline during that period 

b. The cash flows are forecasted to continue for 20 years only, increasing by 3% per year because of inflation  

c. Evaluate the cashflows in a and b and explain which one you will choose and why  

Contextual Information: The students can base their replies on wider research, even from the internet sources, however, all information should be appropriately referred using Business School’s referencing style. Though students quantitative analysis will be same, however, justification, use of theory, paper structure and background for recommendation is to be explained in detail for which you will get higher awards. 

Requirement: Submission is required in MS Word format in Part 1 of the Assignment and MS Excel is required to be uploaded in Part 2 of the Assignment. In MS Word document, Students must have a cover page, with name and word limit written on the same. 


• Wordcount: No specific word limits will be applied to some of the questions in this TMA. 

• Cover, Table of Contents, References and Appendix are excluded of the total wordcount. 

• Font: Arial 12,5 pts. 

• Text alignment: Justified. 

• The in-text References and the Bibliography have to be in Harvard’s citation style.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages