answersLogoWhite

0


Best Answer

wealth maximisation is the appropriate objective of an enterprise financial theory asserts that wealth maximization is the single substitute for a stock holders utility. when the firm maximizes the stockholders wealth the individual stockholder can use this wealth to maximize his individual utility.it can be calculated as:

stock holder current wealth in a firm =(n.o of share owned) *(current price per share)

User Avatar

Wiki User

โˆ™ 2011-09-22 16:07:31
This answer is:
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
User Avatar
Study guides

A fact is something that is true and you have information to back it up , an opinion is what someone think ,Ex that was the worst game ever. Worst the the opinion word because somebody meant think that is the best game ever.

2 cards

Fact

Opinion

โžก๏ธ
See all cards
3.88
โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…
43 Reviews

Add your answer:

Earn +20 pts
Q: What is the definition of 'wealth maximization'?
Write your answer...
Submit
Related questions

What is wealth in in the term wealth maximization?

.


Are wealth maximization and profit maximization related?

Not necessarily


What is the problems of wealth maximization?

the problems of wealth maximization is the minimumization of wealth minimumization...ask me no more thats final......,


Is there a difference between corporate wealth maximization and shareholders wealth maximization?

difference between corp wealth and shareholders wealth is dividend payout.


Wealth maximization vs profit maximization?

wealth maximization is a stratigic target of the entity , while the profit maximizations is a tactical one . the profit maximization always concern with the operational plans .... and the wealth maximization always concern with top managements plans .


Goals of the firm?

profit maximization &wealth maximization of shareholders.


Profit maximization versus wealth maximization?

what should be goal of a firm


What is wealth maximization in financial management?

Wealth maximization is a term that refers the process done by business that brings in high returns. For instance, making investments is an example of wealth maximization.


What is Wealth maximisation in finance management?

Wealth maximization is a modern approach to financial management. It is also known as Value Maximization. The focus of financial management is on the value to owners or suppliers of equity capital. The wealth of owners is reflected in the market value of shares so wealth maximization implies the maximization of the market value of the shares or it simply means maximization of shareholder's wealth.


What is meant by the goal of maximization of shareholders wealth?

The goal of maximization of shareholder wealth is meant by; first, in most cases


What is the difference between profit maximization and maximization of shareholder wealth?

Shareholder wealth (more commonly referred to as shareholder


What is the objective of financial management?

The objective of financial managment is wealth maximization rather than profit maximization. Wealth maximization means the total value of the firm.


Can there be difference between profit maximization and shareholders wealth maximization?

the difference between profit maximization and shareholders wealth maximization is that profit maximization is concern with profit that a company received based on inflow and outflow within a period while shareholders wealth maximization is concern with dividend and capital gain that shareholder received on a return of his/her investment.


Compare shareholders wealth maximization with stakeholders wealth?

sadfsadfsda


Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization because?

Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization


What is Three basic reasons is profit maximization inconsistent with wealth maximization?

Profit maximization is a narrow view which accounts for only the difference between sales and costs Wealth Maximization is broader and more philosophical in approach. Wealth maximisation includes not exhaustively culture , synergy, value, potential and wealth


What are the basic objectives of financial management?

The objective of financial management is wealth maximization rather than profit maximization. Wealth maximization means the total value of the firm.


What is the difference between profit maximization and wealth maximization?

what is ultimate goal of firms.


How does the goal of maximization of shareholder wealth deal with those problems?

How does the goal of maximization of shareholder wealth deal with uncertainty and timing?


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.


Explain wealth maximization and value maximization objectives of financial management?

Wealth maximization of financial management focuses on increasing fixed and current assets while value maximization focuses to strengthen intangible assets.


What is the diffbetween wealth maximization and profit maximization?

well ... wealth maximizations is differ from profit maximization...in many ways ... and also can meet each other in various aspects . wealth maximization is a stratigic target of the entity , while the profit maximizations is a tactical one . the profit maximization always concern with the operational plans .... and the wealth maximization always concern with top managements plans . the two meet each other in the point of how to maximize the shareholders wealth .


Is shareholder wealth maximization the right objective for a company?

Yes, shareholder wealth maximization is a great approach for businesses. With a focus on shareholder wealth the business can grow.


Another name for stockholder wealth maximization is?

Another name for stockholder wealth maximization is maximization of the value of the common stock. Stockholders have little power in corporate decision making.


Maximization of shareholder wealth as a goal is superior to profit maximization because?

it is operating cost