Can someone please provide some assistance with a question. Its for an MBA course..... We can imagine the financial manager doing several things on behalf of the firm's stockholders. For example the manager might: a. Make shareholders as wealthy as possible 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.
But in well-functioning capital markets, shareholders will vote for only one of these goals. Which one? Why?
Thank you so much in advance for your help. I really appreciate it.
Shareholders are going to vote for the wealth creating options. The reason they invest in a company is to make money and while considering risk and risk aversions, or trying to develop plans to meet needs over time is admirable, shareholders want ...
Which choice will manager's make for shareholders from the presented list are determined.