You are running a company that is owned by stockholders. Your goal is to maximize shareholder value. Explain how each of the following events is likely to affect shareholder value and identify uncertainties related to their effects.
Any event / action that improve this value are welcome by them. One variable that is directly related to shareholder value is profits. An event that increases profits is expected to improve share holder value. For the following parts we will evaluate the effect on profits to analyze the effect on shareholder value.
a. Tariffs on the product you sell are reduced and you face more foreign competition.
b. Tariffs on several of the major inputs you use to produce your product are reduced.
c. New pollution control requirements are implemented.
d. Inflation rates rise.
e. A new technology is available that reduces the cost of production.