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How does capital budgeting affect shareholders wealth?
since it is a long run investment, the ability of the firm to involve in effective planning affect the wealth of the shareholders
How do you measure the achievement the goal of the firm?
C) What is the goal of the firm? Discuss how to measure achievement of this goal?
Goal of the firm?
profit maximization &wealth maximization of shareholders.
Why should the shareholder of a firm care about maximizing a value of a firm?
the value of a firm determines their wealth.if the value of a firm,which is the market price per share of the total number of shares issued,is increased,invariably the shareholders' return is increased..by John I Agwu
Has the lowest claim on the assets and cash flow of the firm?
Common shareholders have the lowest claim on the assets of assets of a firm. They have only a residual claim on the assets and are far below the preferred stock classification.
Who are equity shareholders?
Equity shareholders are investors that own the shares of the firm. As an investor you need to pay to get ownership of the shares. The shares are either bought from another investor, or from the firm, when the shares are issued.
The retained earnings of the firm belong to?
The reatined earnings of a firm belongs to teh partners of the firm and in case of a company it belongs to the shareholders.
How does capital budgeting affect shareholders wealth?
since it is a long run investment, the ability of the firm to involve in effective planning affect the wealth of the shareholders
Is profitability of a firm an adequate measure of its efficiency?
to what extent does profitability of a firm measure its efficiency
Is the Gross National Product the measure of success of an economy?
Measure of Success of EconomyYes, the GNP is the measure of success of an economy.
How do you measure the achievements of the goal of the firm?
C) What is the goal of the firm? Discuss how to measure achievement of this goal?
How do you measure the achievement the goal of the firm?
C) What is the goal of the firm? Discuss how to measure achievement of this goal?
Goal of the firm?
profit maximization &wealth maximization of shareholders.
What should the management of Sports Products Inc pursue as its overriding?
Current theory asserts that the firms' proper goal is to maximize shareholders' wealth, as measured by the market price of the firm's stock. A firm's stock price reflects the timing, size and risk of the cash flow that investors expect a firm to generate over time. So financial managers should undertake only those actions that they expect will increase the value of the firm's future cash flow. Theorical and empirical arguments support the assertion that managers should focus on maximization shareholder wealth. Shareholders of a firm are sometimes called residual claimants, meaning that they have claims only on any of the firm's cash flows that remain after employees, suppliers, creditors, governments and other stakeholders are paid in full. As you see, shareholders stand at the end of this line so if the firm cannot pay the stakeholders first, shareholders receive nothing! Shareholders also bear most of the risk of running the firm. So if firms did not manage to maximize shareholders wealth, investors would have little incentive to accept the risks necessary for a business to succeed.
The success of an organism in surviving and reproducing is a measure of its-?
Its success is a measure of the habitat it occupies.
Is The gross national product is measured of the success of an economy?
Measure of Success of EconomyYes, the GNP is the measure of success of an economy.
Why should the shareholder of a firm care about maximizing a value of a firm?
the value of a firm determines their wealth.if the value of a firm,which is the market price per share of the total number of shares issued,is increased,invariably the shareholders' return is increased..by John I Agwu
