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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Most people will not have one dominant image of change management because successful adoption of change is important for any organization. It encourages employees to shift and understand their work an...

Week 2 Discussion
Week 2 Discussion

Most people will not have one dominant image of ch

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Traditional economic theory state that people always choice rational decisions to increase their economic well-being. An improvement in labor productivity leads to an increase in the amount of the fin...

Week 3 Discussion
Week 3 Discussion

Traditional economic theory state that people alwa

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Ans: There are many aspects to leadership and also there are many things that are used in the different types of the leadership assessments. There are many concepts that are associated with leadership...

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Financial Analysis_Maximizing Shareholder Value Essay

Financial Analysis

Q Maximizing Shareholder Value Essay (25 points) The number one reason for a corporation to exist is to maximize shareholder value. In a minimum 600-word essay, explain this concept. Explain what determines value for a shareholder. Identify short-term versus long-term result and balancing the interest of the shareholders versus society as a whole. Conflicts between managers and shareholders can exist. Debt holders have a different perspective from shareholders on what is important. Discuss what is at stake for all three groups (management, shareholders, debt holders).

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Value for shareholder can be referred to as the business owners’ financial worth received by them for shares owned in the firm. There can be a rise in the value of shareholder with earning of greater invested capital return in comparison to the weighted average capital cost. EPS (Earnings per share) of a firm is described as available earnings to common shareholders that is divided by outstanding shares of common stock. The ratio can be regarded as a chief indicator of value of shareholder of a firm. There is an increase in the ratio when earnings can be increased by the company and the company is viewed by the investors to be more valuable (Mauboussin, 2018).