Shareholder wealth and stakeholder wealth maximization

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1. Please define and explain the difference between Shareholder Wealth Maximization and Stakeholder Wealth Maximization. Please articulate your views on what should be management's primary goal(s).

2. A lending institution offers to lend $300.000 now on a contract in which the borrower must pay back S10,000 M at the end of each week for the next 35 weeks. What is the effective annual interest rate expressed in percent per year compounded annually? What is the nominal annual rate?

3. Please define and explain the difference between symmetrical and asymmetrical returns. (Please provide an exaple if appropriate.)

Reference no: EM131978685

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