Question: Please help asap - managing corporate Value Question 2 You work for a mid-sized stock market listed company, where a new CEO has recently been
Please help asap - managing corporate Value

Question 2 You work for a mid-sized stock market listed company, where a new CEO has recently been appointed. He would like the company to focus more closely on creating wealth for its owners. (i) Taking the following corporate performance metrics: Economic Profit, Economic Value Added, Market Value Added, and Excess Return, pick any two measures and discuss in-depth how they are used and the advantages and disadvantages of each metrics. Write this up as a note to the new CEO and give a recommendation as to which method to use. (Word limit: 500) (15 marks) (ii) In August 2019, the Business Roundtable in America, a forum for important business leaders, issued a statement saying that shareholder wealth maximization should no longer be the main mission of the company. Shareholder wealth maximisation has been held up as a key aim of stock market companies for the past 50 years, since Milton Friedman said that this essentially should be the main goal of the company; therefore, the social responsibility of the company was to increase its profits. Do you agree with the Business Roundtable of America and that the company should be more inclusive of a wider stakeholder group or would you favour shareholder wealth maximization? Discuss with supporting arguments for your view. (Word limit: 500) (15 marks)
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