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CHAPTER 1 1 Reasons for management to focus on shareholder wealth maximization include A Shareholders are the owners of the company B Shareholders provide the risk capital that protects the welfare of other constituents C A high stock price provides the best defense against a hostile takeover D Enhanced shareholder value make it easier for the company to attract additional equity capital E All of above 2 Reductions in transportation and communication costs have A Facilitated international produc.