Fundamentals of Corporate Finance

Document Type:Coursework

Subject Area:Accounting

Document 1

Besides, they are also offended with outside interference, hence prefer corporate self-sufficiency and independence. However, I am just wondering how much concern should come from the stakeholders to be considered reasonable and not interference? I believe that the stakeholders of a corporation have the right to meddle into the management, especially when it comes to financial matters. I am a little bit concerned with this issue since I read in the text that the corporate managers may “maximize the amount of resources over which they have control” (Waterfield, 11). For instance, we have had cases in which managers have overpriced some transactions and acquisitions without considering financial implications involved, yet it is indicated that it is important to consider taxation rates (marginal versus average) in any financial decision (Waterfield, 30).

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