Do dual classes of stocks aggravate or lessen the effects of agency problems? Explain how. If...

Do dual classes of stocks aggravate or lessen the effects of agency problems? Explain how. If dual classes of stocks are bad for investors, as claimed by a number of institutional shareholders, then why do investors not protest it more vehemently? To estimate the monetary value of voting power, consider the price differences of GOOG and GOOGL. First, explain their differences in terms of voting powers. Next, find the difference in their stock prices. Is it significant? One argument for dual classes of shares is that it insulates management from the short-term mindset of the Wall Street. Do you agree? Why or why not?

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Do dual classes of stocks aggravate or lessen the effects of agency problems? Explain how. If...

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