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5 paragragh answer : 6. ESSAY QUESTION: What does it mean to say that managers should maximize...

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Finance

5paragragh answer : 6. ESSAY QUESTION: What does it mean to say thatmanagers should maximize shareholder wealth \"subject to ethicalconstraints\"? What ethical considerations might enter intodecisions that result in cash flow and stock price effects that areless than they might otherwise have been?

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Managers can maximize shareholders wealth in multiple ways that might be detrimental to other stakeholdersminority groups etc which might be considered as unethical Managers often focus on temporary boost of shareholders wealth just to boost their performance for the given year    See Answer
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