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According to the text, maximizing shareholder wealth, maximizing stock price per share, and maximizing the value...

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Finance

According to the text, maximizing shareholder wealth, maximizingstock price per share, and maximizing the value of the firm are oneand the same. That is, if a manager maximizes the value of thefirm, that manager will also be maximizing shareholder wealth andthe price per share of the company’s common stock. Explain thisrelationship.

Business Finance, FINC 3155

Answer & Explanation Solved by verified expert
3.7 Ratings (674 Votes)
Value of the firm is computed by multiplying the market value of per share by the total number of shares outstanding Therefore their is a direct relationshipship between the value of the firm and stock    See Answer
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