Question: 1. Define shareholder wealth. Explain how it is measured. 2. What are the differences between shareholder wealth maximization and profit maximization? 3. If a firm

1. Define shareholder wealth. Explain how it is measured.

2. What are the differences between shareholder wealth maximization and profit maximization?

3. If a firm chooses to pursue the objective of shareholder wealth maximization, does this preclude the use of profit maximization decision-making rules? Explain.

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