Assignment
Part A: Stockholders and Management Interests
Stockholders and managers want the same thing, don't they? Theoretically, yes, but in reality, it does not always work that way. Too often, managers' personal goals compete with shareholder wealth maximization. Sometimes, managers pay themselves excessive salaries or bonuses that are at odds with the idea of shareholder wealth maximization. How many times have you seen in the news examples of CEO excesses or outlandish spending on events or things that definitely do not help the overall goal of stockholder wealth maximization?
To prepare for this Discussion, think about a time in your professional experience when a decision was made that seemed to benefit a specific manager or small group of managers and not the overall corporation. If you do not have professional experience directly related to this topic, research a situation in the news where this theme is demonstrated. Consider the outcomes of such an imbalance between manager and stockholder interests and research on how to avoid such a situation.
a. Describe the situation from either your professional experience or your research. (100 words)
b. Explain two or more motivational tools that can aid in aligning stockholder and management interests. (100 words)
c. Explain how your selected tools are effective in resolving potential conflicts among managers and stockholders. (100 words)
Part B: Application of Concepts/Time Value of Money
Review the YouTube video "Bond Valuation". Based on the materials presented in these videos, discuss how you will use the time value of money concepts in managerial decision-making. Be specific and give examples based on your experience or research.
Time Value of Money
Part C: Consider the potential conflict between corporate social responsibility and ethics while maximizing share holder wealth. How does exercising Christian principles play a part in running a successful business while operating within state and federal regulations? (200 words + 1 reference)
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.