In any firm, the balance of power between stockholders and managers is a function of a number of factors internal as well as external. Events can cause the power to shift towards managers or towards stockholders or leave the balance unchanged. Evaluate how the following event would alter the balance of power. The firm's share stock, which is currently followed by no analysts, is added to the list of followed companies at four investment banks.

a. The firm decides to expand its BOD from 11 to 22 and allows the CEO to pick the additional members.
b. An activist investor manages to get the three of his nominees to the BOD at the expense of management nominees.
c. A closely held firm (insider holds 40% of the 100 000 shares) issues 500 000 new non-voting shares to the public to raise fresh capital.
d. The state passes a law against hostile takeovers.

You are the manager in charge of global operations at bankglobal – a large commercial bank that operates in a number of countries around the world. you must decide whether or not to launch a new advertising campaign in the u.s. market. your accounting department has provided the accompanying statement, which summarizes the financial impact of the advertising campaign on u.s. operations. in addition, you recently received a call from a colleague in charge of foreign operations, and she indicated that her unit would lose $8 million if the u.s. advertising campaign were launched. your goal is to maximize bankglobal’s value. should you launch the new campaign? explain. pre-advertising campaign post-advertising campaign total revenues $18,610,900 $31,980,200 variable cost tv airtime 5,750,350 8,610,400 ad development labor 1,960,580 3,102,450 total variable costs 7,710,930 11,712,850 direct fixed cost depreciation – computer equipment 1,500,000 1,500,000 total direct fixed cost 1,500,000 1,500,000 indirect fixed cost managerial salaries 8,458,100 8,458,100 office supplies 2,003,500 2,003,500 total indirect fixed cost $10,461,600 $10,461,600

The dollar value generated over decades of customer loyalty to your company is known as brand equity. viability. sustainability. luck.

Using a cps-sample of 7,440 individuals, you estimate the following regression: = 20.91 - 2.61 x female where female is a binary variable that takes on the value of 1 for females and is 0 otherwise. the standard error on the coefficient on female is 0.25. the 95% confidence interval for the gender wage gap, or the amount that females earn less, is: a) [-3.10, -2.12] b) [18.30, 23.52] c) [-3.02, -2.20] d) [-1.96, -1.64]