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Dear Sir,
BPP kit Mock2 Q5
Least unlikely to increase Shareholders wealth: the answer is The financial award of Directors are linked to increasing EPS. Why “Shareholders wealth increase depend on the increase of cash flow, rather than earning per share”? (That’s the reason explained in the answer)
Thanks.Shareholders wealth is measure by the market value of the shares. The market value of shares is determined by the future expected dividends, which depend on the cash flows.
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