What are the two broad ways that agency costs are mitigated? (page 329-331)
What is meant when people say that monitoring by shareholders suffers from a free-riding problem? (page 330)
What is meant by delegated monitoring? Who are these monitors and what role do they play? (pages 329-330)
Why does giving the manager stock or stock options not eliminate agency problems? (page 331)
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 337)
Define EVA. Is EVA higher or lower than accounting income? (pages 334-335)
If book depreciation does not equal economic depreciation, book return will misstate true profitability. Does EVA solve this problem?(pages 337-339)
