Question 8 Which of the following statements is FALSE? Not yet answered a. Marked out...
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Question 8 Which of the following statements is FALSE? Not yet answered a. Marked out of 4.00 Shareholders need to elect the directors of the company. Shareholders also need to approve many major actions taken by the board. Flag question b. Managerial ownership can alleviate the conflicts of interest between managers and shareholders. c. A resolution at the annual meeting can only be submitted by the largest shareholder. d. If the pay-for-performance sensitivity in managerial compensation is larger, other things equal, managers bear a higher level of risk. Question 9 Which of the following statements is FALSE? Not yet answered Marked out of 4.00 a. As real options can be very valuable, it is common for real options to be traded in competitive markets. b. It is easy to ignore or understate the importance of the option to abandon. In many applications, killing an economically unsuccessful venture can add more value than starting a new venture. C. Due to the option to wait, an investment that currently has a negative NPV can have a positive value. Flag question d. If there is a lower level of uncertainty regarding what the value of the investment will be in the future, the option to wait will be less valuable
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