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Business, 16.10.2019 00:10 zuleymi

Calistoga combines is a publicly-owned firm. in order to best serve shareholders, its' primary operating goal should be to: minimize the firm's risks because most stockholders dislike risk. in turn, this will maximize the firm's stock price. maximize managers' own interests, which are by definition consistent with maximizing shareholders' wealth. since it is impossible to measure a stock's intrinsic value, the text states that it is better for managers to attempt to maximize the current stock price than its intrinsic value. use a well-structured managerial compensation package to reduce conflicts that may exist between stockholders and managers. maximize the firm's expected eps, which must also maximize the firm's price per share.

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