EBK PRINCIPLES OF MANAGERIAL FINANCE
EBK PRINCIPLES OF MANAGERIAL FINANCE
15th Edition
ISBN: 8220106777916
Author: SMART
Publisher: YUZU
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Chapter 1.1, Problem 1.4RQ

Is maximizing shareholder wealth inconsistent with having concern for the welfare of a firm’s other stakeholders?

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Why should shareholder wealth maximization be the overriding objective of the management?
How to encourage the managers to act in a way which is consistent with the objective of maximization of shareholder wealth?
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