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Any objective that is market based is strategic objective. Any objective that can be derived from financial statements is financial objective.
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
To achieve the main object of the company at minimum cost.
Financial public relations companies specialize in messaging for financial institutions or, more broadly, for-profit corporations. The objective generally is to promote the brand(s) and increase their positive public image.
That means maximizing the net present value of the wealth of the shareholders. For Example in taking an investing decision management should choose that project for investment, which will give maximum return to the share holders. Similarly in other financial Decision and for that matter any decision should be taken to with the objectives of maximization of wealth of the shareholders. The objective of the shareholders wealth maximization takes care of the question of timing and risk of the expected benefits. These problems are handled by selecting an appropriate rate(the shareholders opportunity cost of capital) for calculating (discounting) the Expected flow of the future flow of the benefit. It is calculated by this formula: RETUN=RISK FREE RATE+RISK PREMIUM Naman Garg PGDM INMANTEC, Ghaziabad 09837258697 That means maximizing the net present value of the wealth of the shareholders. For Example in taking an investing decision management should choose that project for investment, which will give maximum return to the share holders. Similarly in other financial Decision and for that matter any decision should be taken to with the objectives of maximization of wealth of the shareholders. The objective of the shareholders wealth maximization takes care of the question of timing and risk of the expected benefits. These problems are handled by selecting an appropriate rate(the shareholders opportunity cost of capital) for calculating (discounting) the Expected flow of the future flow of the benefit. It is calculated by this formula: RETUN=RISK FREE RATE+RISK PREMIUM Naman Garg PGDM INMANTEC, Ghaziabad 09837258697
Any objective that is market based is strategic objective. Any objective that can be derived from financial statements is financial objective.
The objective function and the constraints.
A linear objective function and linear constraints.
A linear objective function and linear constraints.
It is a programming problem in which the objective function is to be optimised subject to a set of constraints. At least one of the constraints or the objective functions must be non-linear in at least one of the variables.
General Motors' objective is to sell more cars and to create a profit for their shareholders. They also want to produce quality cars.
It allows you to maximise or minimise objective functions, subject to constraints that are linear.
It is usually the answer in linear programming. The objective of linear programming is to find the optimum solution (maximum or minimum) of an objective function under a number of linear constraints. The constraints should generate a feasible region: a region in which all the constraints are satisfied. The optimal feasible solution is a solution that lies in this region and also optimises the obective function.
its primary objective is to provide external reports called financial statements to help users analyze an organization's activities.
provide quantitative information to users of financial positition.
One. To be a (non-trivial) linear programming problem both the objective function and the constraints must be linear. If there were no constraints then the objective function could be made arbitrarily large or arbitrarily small. (Think of a line in two-space.) By adding one constraint the objective function's value can be limited to a finite value.
what constitutes a financial objective of a firm is the goals, long range planning and business. while that of the economic objective has to do with enviromental scanning and swot analsis