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which of the following statements about controlling shareholder groups reflect proper reasoning?

which of the following statements about controlling shareholder groups reflect proper reasoning?

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Answer #1

firms with controlling shareholder groups have a greater stake in controlling and monitoring managers and reducing inefficiency; hence their cost of equity could be smaller.

answered by: Andrew San Andres
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Answer #2

solution 2) firms with controlling shareholders groups could have a higher cost of equity because minority shareholders may worry about being dispossessed and require a higher return.

answered by: Andrew San Andres
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