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What is the effect of transaction on shareholders wealth

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Reference no: EM131491122

Question: 1. What is wrong with tying management bonuses to earnings per share? What measure would you propose as a management performance metric?

2. The management of a firm that ties employee bonuses to return on common equity repurchases some of the firms outstanding shares. What is the effect of this transaction on shareholders wealth?

Reference no: EM131491122

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