The conflict of interest between stockholders and management is known as:

Related Mcqs:

1. Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be________?

   A. 0.11%
   B. 11.40%
   C. 0.12 times
   D. 12%

2. Formula such as net income available for common stockholders divided by total assets is used to calculate__________________________?

   A. Return on total assets
   B. Return on total equity
   C. Return on debt
   D. Return on sales

3. Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?

   A. 0.07%
   B. 7.14%
   C. 0.05 times
   D. 7.15 times

4. Capital gain expected by stockholders and dividends are included in____________?

   A. Debt rate
   B. Investment return
   C. Interest rate
   D. Cost of equity

5. Rate of return which is required to satisfy stockholders and debt holders is classified as__________?

   A. Weighted average cost of interest
   B. Weighted average cost of capital
   C. Weighted average salvage value
   D. Mean cost of capital

6. Stockholders that do not get benefits even if company’s earnings grow are classified as_____________?

   A. Preferred stockholders
   B. Common stockholders
   C. Hybrid stockholders
   D. Debt holders

7. The net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be ___________?

   A. 0.00114
   B. 0.114
   C. 0.12 times
   D. 0.12

8. The formula such as, net income available for common stockholders divided by total assets is used to calculate __________?

   A. return on total assets
   B. return on total equity
   C. return on debt
   D. return on sales

9. The net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be ________?

   A. 0.0007
   B. 0.0714
   C. 0.05 times
   D. 7.15 times

10. A formula such as net income available to common stockholders divided by common equity is used to calculate __________?

    A. return on earnings power
    B. return on investment
    C. return on common equity
    D. return on interest