Use contracting theory to explain why firms (i. e., boards of directors acting on shareholders’ behalf) would prefer to allow managers a set pf accounting policies (e. g., gaap) from which to choose, rather than completely prescribe accounting policy choice so that managers have no flexibility to choose policies. use contracting theory to explain why managers may also prefer to have a choice of accounting policies.

Match each feature with the savings account type

Suppose the price of a complement to lcd televisions rises. what effect will this have on the market equilibrium for lcd tvs?

Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))