maximizing Shareholders’ Wealth

Book to be used is FINANCIAL THEORY AND CORPORATE POLICY, FOURTH EDITION, Copeland Weston Shastri

Respond to each question in your OWN WORDS (please) do not cut and paste from the textbook

1. What is the marginal rate of substitution (MRS)?

2. What is the value-additivity principle?

3. When using the CAPM framework, what is market risk premium? Define it.

4. What is the main purpose of the Capital Markets?

5. What are some of the common errors of Empirical Studies?

6. Explain stock splits. What effect, if any, do they have on shareholders’ wealth?

7. What are the advantages of Mutual Funds?

8. What is the role of the CFO (Chief Financial Officer)? How has the role evolved in the last 50 years?

9. Define EVA (use your own words)

10. What is the purpose of maximizing Shareholders’ Wealth?

Book to be used is FINANCIAL THEORY AND CORPORATE POLICY, FOURTH EDITION, Copeland Weston Shastri

Respond to each question in your OWN WORDS (please) do not cut and paste from the textbook

1. What is the marginal rate of substitution (MRS)?

2. What is the value-additivity principle?

3. When using the CAPM framework, what is market risk premium? Define it.

4. What is the main purpose of the Capital Markets?

5. What are some of the common errors of Empirical Studies?

6. Explain stock splits. What effect, if any, do they have on shareholders’ wealth?

7. What are the advantages of Mutual Funds?

8. What is the role of the CFO (Chief Financial Officer)? How has the role evolved in the last 50 years?

9. Define EVA (use your own words)

10. What is the purpose of maximizing Shareholders’ Wealth?