Question: a.) Why do we focus on maximizing the shareholder wealth rather than short- term profit maximization? b.) What is the difference between maximize the EPS

a.) Why do we focus on maximizing the shareholder wealth rather than short- term profit maximization?

b.) What is the difference between maximize the EPS (earnings per share) and maximize stock price?

c.)What is the agency conflict between manager and shareholder and how can we reduce this agency conflict?

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