Write a critique of Rappaport's 2006 cover story "Ten Ways to Create Shareholder Value," linked in the Resources under the Required Resources heading.

Note that a critique is not just a summary or opinionit requires a formal analysis and critical review. Your critique should address what the author is saying and what arguments are being made. Be sure to examine whether the author's arguments are supported with facts or data. Address what implications the article may have. Consider what the author has omitted from the article.

In your analysis, address the following points:

Analyze the validity of finance and value creation arguments.

What are the facts and data upon which those arguments rest?

How do these facts validate or invalidate the author's arguments?

Assess the use of financial persuasion to support the arguments.

What financial persuasion elements were present?

Were any financial data or facts omitted?

Analyze the financial implications of the author's arguments.

What does this mean for the organization?

Are there implications for constituents and interested parties?

Synthesize your analysis of the article and your observation of the finance function at your workplace, or a major publicly rated corporation.

What new or deeper understandings do you have about the finance function?

What other insights do you have about the finance function? Use the arguments, facts, data, and financial persuasion elements from the article to support your understanding of the finance function.

Ten Ways to Create Shareholder Value Before we adopt a policy of steadfast re- liance on the principles set forth in A- fred Rappaport's article "Ten Ways to Create Shareholder Value" (September 2006), we need to qualify principles 2 and 3. The article claims that strategic decisions concerning core businesses, new business ventures, acquisitions, share repurchases, and cash-dividend issuance should be made according to "the expected incremental value of fu- ture cash flows" instead of"the esti- mated impact on reported earnings This holds true only under the presump tion of risk neutrality that a decision makercares only about the expected re- turn on an investment, not about the risk (variance of outcomes or the poten- ial gains or losses)embedded in such an investment A company strictly adhering to the principles as stated in the article should never voluntarily elect to insure its as