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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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- How do the shareholders of an organization can encourage its manager to act in a way which is consistent with the objective of maximization of shareholders' wealth?What goals can be pursued other than maximizing shareholders wealth.Discuss ways in which shareholders of a company can encourage its managers to act in a way which is consistent with the objective of maximization of shareholders’ wealth.
- what does it mean to say that managers should maximize shareholders wealth subject to ethical constraints?If management’s goal is to maximize shareholderwealth, should it focus on the regular IRR or theMIRR? Explain your answer.Explain the difference between profit maximisation and shareholder wealthmaximisation.
- Describe and explain the concept of market efficiency. In what sense is this concept an important part of the shareholder wealth maximization objective? Elaborate your answer. Please.Identify the conflict between the goal of shareholder wealth maximization and other stakeholder concerns (sometimes referred to as environmental, social, and governance (ESG) concerns).A goal of financial management is to maximize the shareholders' value. What are the pros and cons of this goal? Explain whether you agree or disagree with this goal
- What is meant by the goal of maximization of shareholder wealth?how is financial decisions helps create value for the firm's shareholder?question 1 a) discuss ways in which a company's shareholders can encourage its managers to act in a way which is consistent with the objective of maximising shareholders wealth.