Contemporary Financial Management
14th Edition
ISBN: 9781337090582
Author: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 3QTD
Summary Introduction
To discuss: The kind of company that is more suitable to be a shareholder’s wealth maximizer one with wide proprietorship and no proprietors directly involved in the company’s management or one that is held closely.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What goals might be pursued by managers instead of maximization of shareholder wealth?
How to encourage the managers to act in a way which is consistent with the objective of maximization of shareholder wealth?
Why should shareholder wealth maximization be the overriding objective of the management?
Chapter 1 Solutions
Contemporary Financial Management
Knowledge Booster
Similar questions
- It has been argued that shareholder wealth maximization is not a realistic normative goal for the firm, given the social responsibility activities that the firm is “expected” to engage in (such as contributing to the arts, education, etc.). Explain why these social responsibility activities are not necessarily inconsistent with shareholder wealth maximization.arrow_forwardIdentify the conflict between the goal of shareholder wealth maximization and other stakeholder concerns (sometimes referred to as environmental, social, and governance (ESG) concerns).arrow_forwardExplain the idea behind Shareholder wealth maximisation, mention proponents behind this approach, c level executives that have advocated the SHWM as the only corporate objectivearrow_forward
- What other objectives that are important to a public limited company which are in-line with the primary objective of shareholder wealth maximization?arrow_forwardShareholder wealth maximization and social responsibility – Is shareholder wealth maximization inconsistent with social responsibility (contributing to the arts, education, social programs, etc.)? Explain why social responsibility activities may or may not be inconsistent with shareholder wealth.arrow_forwardHow does attracting equity capital easier for a corporation?arrow_forward
- Why should maximizing the wealth of our owners be your PRIMARY financial objective as a future Chief Financial Officer of a publicly listed firm, but corporate social responsibility is considered secondary only?arrow_forwardExplain the Threat and Opportunity of Shareholder Activism ? Explain the Effect of Executive Compensation on the Cost of Equity? Why Corporate Governance Is Important to Investors?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTBusiness/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage