Question: Why is maximizing current share price not equivalent to maximizing long- term value? When managers and boards of directors evaluate firm performance, how might focusing

  1. Why is maximizing current share price not equivalent to maximizing long- term value?
  2. When managers and boards of directors evaluate firm performance, how might focusing exclusively on corporate earnings lead them astray?
  3. Give examples of situations where shareholders and other stakeholders interests are complementary. Give examples of situations where these interests are not complementary. If interests conflict, what should management do?
  4. What are some of the common feature of the 2008 stock market reach and previous market crashes? For example, Japans in the 1990s or the internet bubble around the turn of the millennium?

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