Why is maximizing of shareholder wealth not necessary


Response to the following questions:

1. Why is the maximizing of shareholder wealth not necessarily equivalent to the maximizing of earnings per share?

2. Through 1997, the Burlington Coat Factory Warehouse Corporation had not paid any dividends. Why were investors willing to pay over $10 for a share of Burlington stock in 1997?

Make sure you use enough details to support your answers.

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Financial Accounting: Why is maximizing of shareholder wealth not necessary
Reference No:- TGS02106950

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