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Explain the rationale for selecting shareholders wealth maximizatio as the objective of the firm?
Wiki User
∙ 10y ago
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
Wiki User
∙ 10y ago
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What is meant by wealth maximization?
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
In a noncompetitive negotiation which factor is not considered when selecting the Government's pre-negotiation objective for best value?
non-responsible
What were your consideration in selecting your customers?
Gyro shggvihgiugg utgy
What are the factors to consider when selecting a credit card?
There is a few things to consider when selecting a credit card. The main things to consider would be interest rates, reviews on the company and what you are wanting to use the card for.
What are the factors to consider when selecting sources of business finance?
cost of the finance
What involvesinvolve selecting targets and striking when where and how it will best support their political or operational objective?
insurgent strategy
What is meant by wealth maximization?
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
Which strategy- formulation technique reveals the relative attractiveness of alternative strategies and thus provides an objective basis for selecting specific strategies?
QSPM
What steps are involved in developing an advertising program?
identifying the audience selecting the right media developing advertising messages specify advertisment objective
In a noncompetitive negotiation which factor is not considered when selecting the Government's pre-negotiation objective for best value?
non-responsible
What is the responsibility of a mutual fund's management company?
The management company is responsible for selecting an investment portfolio that is consistent with the objectives of the fund as stated in its prospectus and managing the portfolio in the best interest of the shareholders.
What is concrete mix design?
Its the process of selecting suitable ingredients of concrete and determining their relative amounts with the objective of producing a concrete of the required, strength, durability, and workability as economically as possible, is termed the concrete mix design.
What is the probability of selecting March?
The answer depends on what you are selecting from. If you are selecting months in which the equinoces occur, the probability is 0.5
Why is context important in selecting and applying guidelines and principles for interface design?
Design rationale is the process of documenting the reasons behind design decisions. In interface design, documenting the design rationale can provide numerous benefits, including: Improving decision-making: By documenting the design rationale, designers can review and reflect on their design decisions and the thought processes that led to them. This can help them make better decisions in the future and avoid repeating mistakes. Enhancing communication: Design rationale can be used to communicate design decisions to stakeholders, clients, and team members. This can help ensure that everyone is on the same page and understands the reasoning behind the design. Facilitating collaboration: Documenting the design rationale can help teams work more effectively together by creating a shared understanding of the design and its goals. It can also help prevent misunderstandings and conflicts that can arise from different interpretations of the design. Supporting design evolution: As the design evolves over time, the design rationale can help designers understand the reasoning behind previous design decisions and make informed decisions about how to move forward. Enabling evaluation: Design rationale can provide a basis for evaluating the effectiveness of the design. By comparing the actual outcomes of the design with the initial design rationale, designers can identify areas for improvement and make iterative changes to the design. Overall, documenting the design rationale can help ensure that interface designs are well-informed, well-communicated, and well-executed.
The odds of not selecting a queen of hearts?
The odds of not selecting a queen of hearts is 51 in 52.
IRQ assignments on a PC running Windows 98 can be accessed by?
right clicking my computer, selecting properties from the shortcut menu, selecting the hardware tab, and then selecting the device manager button.
What are factors are important in selecting bowling?
weight, span and pitch must be considered in selecting a Bowling ball.
