Suggest how stockholders' direct engagement with managers and management remuneration may be utilised to guarantee managers operate in the best interests of shareholders by maximising shareholder value.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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a) Suggest how stockholders' direct engagement with managers and management remuneration may be utilised to guarantee managers operate in the best interests of shareholders by maximising shareholder value.

b) Explain the link between the Weighted Average Cost of Capital (WACC) and If you use market values to calculate the WACC and your stock price or bond prices become erratic, elaborate how this will influence your capital structure and, as a result, the firm’s investment choice.

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