Weighted Average Cost of Capital(英文版)(ppt 40頁)

Weighted Average Cost of Capital(英文版)內容提要：
Factors in CS & CB Decision：
Bankruptcy Risk & Costs (previous slides)
Signaling Hypothesis
Bondholder Wealth Expropriation Theory
Agency Costs
Agency Problems in Capital Budgeting
Reduced effort
Perks
Empire building
Entrenching investment
Avoiding risk
Agency Incentive Issues
Monitoring - Reviewing the actions of managers and providing incentives to maximize shareholder value.
Free Rider Problem - When owners rely on the efforts of others to monitor the company.
Compensation - How to pay managers so as to reduce the cost and need for monitoring and to maximize shareholder value.

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