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snow_tiger [21]
3 years ago
11

We can imagine the financial manager doing several things on behalf of the firm’s stockholders. For example, the manager might d

o the following: Increase the firm's market value by investing in real assets. Modify the firm’s investment plan to help shareholders achieve a particular time pattern of consumption. Choose high- or low-risk assets to match shareholders’ risk preferences. Help balance shareholders’ checkbooks. However, in well-functioning capital markets, shareholders will vote for only one of these goals. Which one will they choose?
Business
1 answer:
s2008m [1.1K]3 years ago
7 0

<u>Answer:</u>

<em>a. Make shareholders as wealthy as possible by investing in real assets.</em>

<u>Explanation:</u>

We can imagine the <em>financial manager </em>doing several things on behalf of the firm’s stockholders. For example, the manager might do is make the shareholders as wealthy as possible by<em> investing in real assets</em>.

The shareholders has <em>paper financial leverage</em> and only the value of decomposition of the firm increases, it means that the shareholders have the ability to do the <em>financial leverage.</em>

And the hell used to decompose in the market which it is good to I must be have to the ability to do it in a simple way to think in <em>a simple language.</em>

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