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Should company managers focus on “shareholder value maximization” as the primary goal of a firm? What are the pros and cons of shareholder value maximum as the objective function of the firm? What kinds of conflicts can arise because of this goal? Please explain.

 

Short Writing Assignment – 1 page APA paper 

 

In order to prepare for the course project – where you will be exploring details related to a public company of your choosing – we will do some group investigation here.

 

Yahoo! Finance is a popular resource for conducting financial investigation of companies. We will be using it extensively in the Course Project. For the discussion this week, go to Yahoo! Finance and look up Microsoft (“MSFT”). Answer the following information about Microsoft:

Select the Income Statement link. https://finance.yahoo.com/quote/MSFT/financials?ltr=1

 

Identify the following:

• Total Revenue for each of the past three years.
• Net Income for each of the past three years.
• Calculate the Profit Margin for each of these years based on the above data.
• Is there a performance trend?

 

Select the Historical Prices link. https://finance.yahoo.com/quote/MSFT/history?ltr=1

 

Look up the stock prices on Dec. 31 for each of the years above. What are they? Is there a trend to the stock prices? Does it follow the trend with the Profit Margins you have calculated?

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