Homework VlX UTF-P Home. c er C Sign In Cri AL et01-xythos.s3.us-east-1.amazonaws.com dispositions in UTF-8"Homework%20for%20Valuation%20FIN340.pdf - + Automatic Zoom : Valuation: Measuring and Managing the value of Companies, University Edition bee.edu. Printing is for personal. private use only. No part of this book may be reproduced or transmitted be prosecuted. 16 WHY VALUE VALUR REVIEW QUESTIONS 1. What benefits does a long-term perspective on value creation offer for com- panies? For the economy? 2 Why is maximizing current share price not equivalent to maximizing long- term value? 3. When managers and boards of directors evaluate firm performance, how might focusing exclusively on corporate earnings lead them astray? 4. Give examples of situations where shareholders and other stakeholders interests are complementary. Give examples of situations where these inter- ests are not complementary. If interests conflict, what should management do? 5. What are some of the common features of the 2008 stock market crash and previous market crashes-for example, Japan's in the 1990s or the Internet bubble around the turn of the millennium? 6. If growth is a significant value driver, does getting bigger translate into cre- ating value? Explain. 7. What more could boards of directors and shareholders do to ensure that managers pursue long-term value creation? Homework VlX UTF-P Home. c er C Sign In Cri AL et01-xythos.s3.us-east-1.amazonaws.com dispositions in UTF-8"Homework%20for%20Valuation%20FIN340.pdf - + Automatic Zoom : Valuation: Measuring and Managing the value of Companies, University Edition bee.edu. Printing is for personal. private use only. No part of this book may be reproduced or transmitted be prosecuted. 16 WHY VALUE VALUR REVIEW QUESTIONS 1. What benefits does a long-term perspective on value creation offer for com- panies? For the economy? 2 Why is maximizing current share price not equivalent to maximizing long- term value? 3. When managers and boards of directors evaluate firm performance, how might focusing exclusively on corporate earnings lead them astray? 4. Give examples of situations where shareholders and other stakeholders interests are complementary. Give examples of situations where these inter- ests are not complementary. If interests conflict, what should management do? 5. What are some of the common features of the 2008 stock market crash and previous market crashes-for example, Japan's in the 1990s or the Internet bubble around the turn of the millennium? 6. If growth is a significant value driver, does getting bigger translate into cre- ating value? Explain. 7. What more could boards of directors and shareholders do to ensure that managers pursue long-term value creation