What is meant by agency costs? (pages 304-305 of the book)
What are the two broad ways agency costs are mitigated? (page 305 of the book)
What is meant when people say that monitoring by shareholders suffers from a free-riding problem? (page 306 of the book)
What is meant by delegated monitoring? Who are these monitors and what role do they play? (pages 305-306 of the book)
Why does giving the manager stock or stock options not eliminate agency problems? (page 306 of the book)
If a project has high start-up costs, will its book return overstate or understate profitability in the early years? What about the later years? (page 314 of the book)
Define EVA. Is EVA higher or lower than accounting income? (pages 310-311 of the book)
If book depreciation does not equal economic depreciation, book return will misstate true profitability. Does EVA solve this problem? (pages 314-316 of the book)
