In an effort to identify the share price that should trigger a bonus, the payment for the CEO, and maximize shareholder value, how much would you, the Compensation Committee, be willing to pay an...

In an effort to identify the share price that should trigger a bonus, the payment

for the CEO, and maximize shareholder value, how much would you, the Compensation Committee, be willing to pay an auditor to examine the expense and

revenue flows in real time and deliver perfect forecasting information about the

“luck” the firm is experiencing? Compare shareholder value with this perfect information relative to the best choice among the cash bonus plans in Questions 2,

3, and 4.