0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is the goal of financial management?
To Maximize shareholder wealth.
What is the goal of an organization?
It depends on what type of an organization it is. If it is a privately owned organization the goal is "To Maximize Profit" If it is a Public limited company (Has its shares listed in the stock market) the goal is "To Maximize shareholder wealth"
How a financial manager can maximize the wealth of shareholders?
effects of donations and sponsership on maxsimising shareholders wealth?
How will you maximize the wealth of share holder?
By choosing strategies in marketing, management, production, legal and so forth that lposition the company to make the highest profit in the long run.
In financial theory the objective is to maximize shareholder wealth and not maximize profit?
Maximizing shareholder wealth and maximizing profit goes hand in hand. A firm maximizes shareholder wealth by investing in projects that will increase profits and the cash flows of the firm, finding ways to prudently cut variable and fixed operating costs and creating products that will increase revenues. The firm's executives must also manage the company and its operations in a fiscally responsible manner in order to increase the profitability of the company. By taking these steps the firm therefore increases the shares of its stocks which increases shareholder wealth.
What is the goal of financial management?
To Maximize shareholder wealth.
How might creditors use this information that contained in financial statements?
To improve the company's performance in other to maximize shareholders wealth
What is the goal of an organization?
It depends on what type of an organization it is. If it is a privately owned organization the goal is "To Maximize Profit" If it is a Public limited company (Has its shares listed in the stock market) the goal is "To Maximize shareholder wealth"
What do you understand by the term maximising the owners wealth?
Maximizing the owner's wealth means, In short & medium organization- maximize the profit of the organization. And in Corporation- maximize the value of share. hazrasabbir@yahoo.com
Why are companies in business?
To maximize Shareholder's Wealth!
Justify and criticize the unusual assumption made in finance literature that the objective of a company is maximize the wealth of it shareholder do not consider the problem of how is to be measured?
Justify and criticise the usual assumption made in finance literature, that the objective of a company is to maximise the wealth of its shareholders
How a financial manager can maximize the wealth of shareholders?
effects of donations and sponsership on maxsimising shareholders wealth?
How can we maximize the shareholder wealth in banking sector?
There are several ways to maximize the shareholder wealth in banking sector. This would entail encouraging more clients to transact with the bank which will generate more income for the banks and thereby maximizing the wealth of shareholders.
How will you maximize the wealth of share holder?
By choosing strategies in marketing, management, production, legal and so forth that lposition the company to make the highest profit in the long run.
Why is maximizing shareholders wealth a good philosophy?
Shareholders are actually owners of the company in which they hold stock in. All decisions should be made with the consideration of maximizing shareholders wealth. It is not to just increase the size of the company or to see that executives get rich but rather to maximize the return for shareholders/owners of the corporation.
In financial theory the objective is to maximize shareholder wealth and not maximize profit?
Maximizing shareholder wealth and maximizing profit goes hand in hand. A firm maximizes shareholder wealth by investing in projects that will increase profits and the cash flows of the firm, finding ways to prudently cut variable and fixed operating costs and creating products that will increase revenues. The firm's executives must also manage the company and its operations in a fiscally responsible manner in order to increase the profitability of the company. By taking these steps the firm therefore increases the shares of its stocks which increases shareholder wealth.
How can shareholders wealth be maximized?
Shareholders wealth can be maximized by maximizing Return on Equity, which is equal to Net Income divided by equity. The higher the net income the more the stock price will increase which will maximize their wealth.
