You are a financial manager in a public corporation. One of your engineers says that they can
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You are a financial manager in a public corporation. One of your engineers says that they can increase the profit margin on your flagship product by using a lower quality vendor. However, the product is likely to fail more often and will generally not last as long. Will taking your engineer’s suggestion necessarily make shareholders better off? Why or why not?
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Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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