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Unformatted text preview: would be to maximize wealth for the shareholders by achieving the highest value for the firm. This goal is a bit harder to control since a firm cannot directly affect the earnings, but only stay consistent with what it is that shareholders want. Management can directly affect stockholder wealth by not maximizing their wealth. When the firm puts their needs before what the stockholders wants than that’s when stockholders will start to pull away from the firm. By following these goals a firm can have faith that stockholders will be interested....
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This note was uploaded on 10/30/2010 for the course FIN 320 ASDFI taught by Professor Asdf during the Spring '09 term at University of Phoenix.
- Spring '09