Remove 2019 Remove Debt Financing Remove Net Present Value
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Modeling Managers as EPS Maximizers

Reynolds Holding

In business schools, managers are taught to maximize the net present value (NPV) of future cash flows. Review of Corporate Finance Studies 8(1), 174–206. In the real world, managers consistently ignore this advice. When asked, they repeatedly say they maximize earnings per share (EPS). REFERENCES Almeida, H. Graham, J.,