Discuss ways in which a company's shareholders can encourage its managers to act in a way which is consistent with the objective of maximizing shareholders wealth.  (b) Explain the important for managers to understand the importance of both the internal growth rate and the sustainable rate of growth.  (c) "Low dividend payout is desirable." Justify. 

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a Shareholders can encourage managers to act in a way consistent with the objective of maximizing shareholders wealth through various means Aligning Incentives Shareholders can design compensation pac... View the full answer