Question $9$

Reynolds, Inc. needs to raise $$5$ million by selling common stock. Reynolds sells $1$ million shares of stock at $$5$ each to Goldman Sachs, who then is responsible for selling the shares to investors. This is an example of a

$=>$ A$)$ negotiated purchase.

$x$

B$)$ commission or best$-$efforts agreement.

C$)$ privileged subscription.

D$)$ standby agreement.

Maximization of shareholder wealth

A$)$ is achieved only if cash flows exceed accounting profits.

B$)$ represents a zero sum game in which one corporation gains at the expense of others.

C$)$ is not a practical goal since it cannot be measured effectively.

D$)$ provides benefits to society as scarce resources are directed to their most productive use.