The firm uses measures from its financial statements to improve shareholder value. What element in the SAVANT Framework was used in this scenario? (type your answer in small letters)
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- If a company’s board of directors wants management to maximize shareholder wealth, should the CEO’s compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm performs? If it is to be based on performance, how should performance is measured? Would it be easier to measure performance by the growth rate in reported profits or the growth rate in the stock’s intrinsic value? Which would be the better performance measure? Why?Which of the following is NOT a way of stating the overriding goal of financial management? Select one: a. Maximising the value of the firm. b. Maximising the wealth of shareholders. c. Maximing the firm's share price. d. Maximising revenue.There are vairous measures to evaluate a company's finances. What are three measures that look at shareholder equity as part of the formula?
- If a company’s board of directors wants management to maximize shareholder’s wealth, should the CEO’s compensation be set as a fixed amount, or should the compensation depend on how well the firm performs? If it is based on performance, how should performance be measured? Would it be easier to measure performance by the growth rate in reported profits or the growth rate in the stock’s intrinsic value? Which would be the better performance measure? Why?What effect would the calculation performed have in terms of shareholder value? In other words, suppose the company’s goal is to maximize shareholder value. How will doubling outstanding shares support or inhibit that goal? Be sure to justify reasoning.Which one of the following statements is TRUE? a. Creditors have a claim on a firm's earning stream through the dividend payments they receive. b. One tool of corporate governance is a company's tax avoidance strategy. c. One tool of corporate governance is stock repurchases. d. One tool of corporate governance is how the company's charter affects the likelihood of a takeover. e. One tool of corporate governance is choosing a good investment banker.
- .......theory would deduce that corporate growth causes an increase in shareholder remittance . Select one : a . Agency Theory b . Normative Accounting c . None of the other Points d . Positive Accountinghow is financial decisions helps create value for the firm's shareholder?Some may argue that a company’s financial bottom line is all important. Comment on this from the financial perspective of the BSC approach.
- The primary goal of financial managers include all of the following EXCEPT : A. Maximize stockholder wealth. B. Maximizing firm value C. Challenge legislation in states where the company operates D. Minimizing WACCIf management’s goal is to maximize shareholderwealth, should it focus on the regular IRR or theMIRR? Explain your answer.Analyze the impact of external factors (i.e., external to the company) on a company’s financial position. ???Competition. Social. Legal. Economic. Political. Ect??? (any additional external factiors welcome as well)