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depends on how you mean finance capital and leverage are two words probably very familiar nowadays, the main ratio to look at is ROE which stands for return on equity this is the measure of how much profits the shareholders are getting for the equity they own, the higher this is the better, normally roe of between 15-20% is considered desirable.

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Q: How does corporate finance maximize shareholders wealth?
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How a financial manager can maximize the wealth of shareholders?

effects of donations and sponsership on maxsimising shareholders 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


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.


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 might creditors use this information that contained in financial statements?

To improve the company's performance in other to maximize shareholders wealth


Why is adjusting the WACC upwards consistent with the overall corporate goal of shareholder wealth maximization?

why? isn't it to adjust it downwards to max. shareholders 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.


What are the tactical goals of an organization?

tactical goals of a FOR PROFIT organization is to maximize shareholders wealth. Goals of a NOT-FOR-PROFIT organization are to fulfill its mission statement to the best of its ability.


What is meant by wealth maximization in a corporate finance environment How are corporate securities contingent claims on the firm's value?

Wealth maximization has been accepted by the finance managers, because it overcomes the limitations of profit maximization. Wealth maximization means maximizing the net wealth of the company's share holders. Wealth maximization is possible only when the company pursues policies that would increase the market value of shares of the company.


Shareholders wealth is measured by the current?

how is wealth measured?


Does dividends have an impact on shareholders wealth?

Getting dividends increases your wealth.


What do you mean by shareholders wealth maximisation?

analysis of shareholder wealth maximisation