Describe the process whereby the owners control the firm’s management.

(Answer All Questions; Submit as One Essay) Dear Writer, please include the class textbook in your reference pages and if possible in your in-text references when providing answers. Thank you
1. AGENCY PROBLEMS
Who owns a corporation? Describe the process whereby the owners control the firm’s management. Describe the main reason why an agency relationship exists in the corporate form of organization. In this context, describe the types of problems that can arise.
2. ENTERPRISE VALUE
A firm’s enterprise value is equal to the market value of its debt and equity, less the firm’s holdings of cash and cash equivalents. This figure is particularly of interest to potential purchasers of the firm. Why?
3. CURRENT RATIO
Explain what it means for a firm to have a current ratio of .50. Would the firm be better off with a current ratio of 1.50? What if it were 15.0? Explain your answers.
4. PEER GROUP ANALYSIS
As a financial manager, how might you use the results of peer group analysis to evaluate the performance of your firm? How is a peer group different from an aspirant group?
Please number each of your answers. This is very important so that I understand which questions you are responding to.
Post essay as a single MS Word attachment
Assignment Grading Criteria:
Thoroughly answered all of the questions: 60 points possible
Spelling/Grammar at the college level: 20 points possible
References to course material with proper APA format: 20 points possible
Total: 100 points
Class Textbok: Ross, S.A., Westerfield, R. W., Jordan. B. D. (2020). Essentials of Corporate Finance (10th ed). New York, NY: McGraw Hill
ISBN: 9781260394733

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