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At present, assuming a company focuses on maximizing shareholder wealth as its major goal. The managing director thinks this single goal is inappropriate and asks
At present, assuming a company focuses on maximizing shareholder wealth as its major goal. The managing director thinks this single goal is inappropriate and asks his co-directors for their views on giving greater emphasis on cash flow generation and profitability as measured by profits after tax and return on investment. Discuss.
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The managing director raises a valid point While shareholder wealth is important focusing solely on it can have drawbacks Heres a breakdown of the arg...
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