Topic_01_E1 - Topic 1, Exercise 1 The Goal of Shareholder...

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Topic 1, Exercise 1 The Goal of Shareholder Wealth Maximization Go to BusinessWeek.com and in the left margin link to Special Reports. Find the Business Week 50 special report, a list of the top fifty performing companies in the previous year. Read the report. 1. What are the criteria that were used to select the Business Week 50? Review the BW50/S&P 500 Scoreboard from a link on the BW50 page. Which of the performance measures is best related to shareholder wealth maximization? Why? How do the companies rank using the "wealth maximization" variable? (In the BW50/S&P 500 Scoreboard, click on the performance measure and the list will reorder/rank based on your chosen criterion). Review the Glossary to see how each performance measure is calculated. The BW 50 report identifies eleven variables for measuring performance. One of the performance measures is total shareholder return over the last year and the last three years. Other factors that are closely related are revenue growth and earnings growth. The
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This note was uploaded on 09/13/2011 for the course FIN 6301 taught by Professor El-asmawanti during the Fall '09 term at University of Texas at Dallas, Richardson.

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Topic_01_E1 - Topic 1, Exercise 1 The Goal of Shareholder...

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