Case Scenario 2: Jewell Company.
Jewell Company is a diversified manufacturer and marketer of simple household items, cookware, and hardware. In its annual report, it expresses its strategy as follows: "Jewell manufactures and markets staple volume lines to the volume purchaser. We aim to increase shareholder value by continuing to build a company with superior earnings per share growth and return on investment (ROI), and to earn a reputation for excellence in performance and management. We plan to do this by merchandising to the customer goods market a multi-product offering with superior customer service performance for maximum market leverage. Through this we will achieve an ROI of 20% plus EPS growth of 15%, with the constraint that debt not exceed half of our equity."
-(Refer to Case Scenario 2) Jewell Company's statement that it intends to increase shareholder value by continuing to build a company with superior earnings per share growth and return on investment indicates the importance of the capital market stakeholder group to the company.

Question

Quizplus · Accepted Answer

The statement clearly indicates the company's focus on increasing shareholder value, which suggests the importance of the capital market stakeholders who are primarily concerned with the company's financial performance and profitability.