Problem: In the context of shareholder wealth-maximization model of a firm, what is the expected impact of each of the following events on the value of the firm?
1. New foreign competitors enter the market
2. Strict pollution control requirements are implemented by the government.
3. A previously nonunion workforce votes to unionize.
4. The rate of inflation increases substantially
5. A major technological breakthrough is achieved by the firm, reducing its cost of production.