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The concept of shareholdervaluemaximization focuses on maximizing the value of equity.But in a finance balance sheet, we can see that thisis not quite the same

  1. The concept of shareholdervaluemaximization focuses on maximizing the value of equity.But in a finance balance sheet, we can see that thisis not quite the same as maximizing the value offirm? Why?
  2. How will increasing the risk of the firm affect the value of liabilities? the value of equity? the value of the firm?

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