1. Do some research and find some historical or current real-life examples of agency problems. Will the measures discussed in the text help to prevent problems like your examples in the future? What else would you advise?

2. Buckley's Food Supply Store, Inc. sales are expected to increase by 20% from $9 million in 2022 to $10.8 million in 2023. Its assets totaled $6 million at the end of 2022. Buckley is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2022, current liabilities were $1.8 million, consisting of $550,000 of accounts payable, $700,000 of notes payable, and $550,000 of accruals. The after-tax profit margin is forecasted to be 7%, and the forecasted payout ratio is 45%. Use the AFN equation to forecast Buckleys additional funds needed for the coming year.

3. Please name two types of managerial behaviors that can reduce a firms intrinsic value.