Centennial College

Financial Management
Assignment #1

Submit
ted By: Gloria Anthony
S
tudent I.D. - 300869569

Professor
Name: Tulsie Ramdayal
D
ue Date: 25 May, 2016
th

Answer 1) In comparison with Canada, I think Japan and Germany have low rate of
agency problems because the shareholders of small group of companies are held by
individual owners. Where as in Canada and US a large number of people invest in
the companies and these companies are owned by individuals. So according to me
the agency problem arises between the management and the stakeholders. If a
company is owned by an institution, then the chances of conflicts between the
manager and the owners reduces. This will in turn help in creating a more efficient
and effective market.
Section 2)
Answer 1.)

Answer 2.)

Answer 3) The main aim of any company is to increase the wealth of their
shareholders. If the managements of the company is able to increase the share
price more than $35 per share then the company must oppose the placed bid. In
case the management of the company is not able to improve the financial health of
the company then they are not acting in the shareholders best interest.