Describe three secondary tactics that are used to maximize stockholder wealth.

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Expert Solution

Following are the tactics that can be used to maximize shareholders' wealth:

i)Providing stock options to managers is an excellent way to maximize shareholders' wealth.

ii)Increase the sale price of the product, assuming that firm is continue to sell the same amount or more will generate more profit and wealth.

iii)firm can invest in real property, mutual funds, and insurance products just like individuals.

jeff jeffy answered 2 years ago

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