- Analyze the three internal governance mechanisms (ownership concentration, boards of directors, and executive compensation) and recommend a possible fourth mechanism that would help align the interests of managerial agents with those of the firm’s owners. Provide specific examples to support your response.
- From the e-Activity, determine how U.S.-based corporations could incorporate elements of the corporate governance practices you researched to help top-level managers make better ethical decisions. Provide specific examples to support your response.
“Finding the Best Buy” Please respond to the following:
- Corporate governance has become a hot issue in the U.S. over the past two decades. From your analysis of the case study, determine two possible corporate governance challenges that might be faced by Best Buy as a result of its rapid growth and why they could become corporate governance issues.
- Make recommendations for how Best Buy can overcome these challenges. Provide specific examples to support your response.Assume annualized interest rates in the U.S. and Switzerland are 10% and 4%, respectively, and the Swiss franc can be exchanged for $0.3807. Assume covered interest rate parity holds. What is the 90day forward rate for the Swiss franc ($/Swiss franc)?
2. If annualized interest rates in the U.S. and Switzerland are 10% and 4%, respectively, and the 90day forward rate for the Swiss franc is $.3864, at what current spot rate will covered interest rate parity hold?
3. Annualized interest rates in the U.S. and France on January 1, 1991 are 9% and 13%, respectively. The spot value of the franc is 0.1109 per dollar.
4. Suppose the Swiss franc is worth $0.40 at the beginning of the year. During the year, U.S. inflation is 5% and Swiss inflation is 3%.