Managers, Shareholders, and lenders of firm have identical information about the value of the firm.

Question

Quizplus · Accepted Answer

Managers may have more information about the operations and future prospects of the firm than shareholders and lenders, which may affect their perception of the firm's value. Shareholders and lenders may only have access to publicly available financial information and may not have the same level of insider knowledge as managers.

Managers, Shareholders, and Lenders of Firm Have Identical Information About