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We can imagine the financial manager doing several things on behalf of the firm's stockholders. For example, the manager might do the following a. Increase
We can imagine the financial manager doing several things on behalf of the firm's stockholders. For example, the manager might do the following a. Increase the firm's market value by investing in real assets b. Modify the firm's 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. However, in well-functioning capital markets, shareholders will vote for only one of these goals. Which one will they choose? Ob Oc
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