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We can imagine the financial manager doing several things on behalf of the firms stockholders. For example, the manager might: a. Make shareholders as wealthy
We can imagine the financial manager doing several things on behalf of the firms stockholders. For example, the manager might: a. Make shareholders as wealthy as possible by investing in real assets. b. Modify the firms investment plan to help shareholders achieve a particular time pattern of consumption. c. Choose high- or low-risk assets to match shareholders risk preferences. d. Help balance shareholders checkbooks. But in well-functioning capital markets, shareholders will vote for only one of these goals. Which one? Why
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