value of $650,000,000 or not less than $500,000,000 to achieve the target as they foresee bad luck. Therefore, the company’s potential to growth from various opportunities might be ignored by the CEO. Question 5: Shareholder's value gained with perfect forecasting info = $240,000,000 Shareholder's value gained without perfect info = ( $800,000,000 - $500,000,000 ) 0.4 (medium luck) = $120,000,000 The amount pay to auditor = ( $240,000,000 - $120,000,000…
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