0
What else can I help you with?
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
Liquidation value of the firm asset could be considered as?
The average wealth of shareholder
When a firm is maximizing profit what else will it maximize?
When a firm maximizes its profit, it automatically maximizes its shareholder value. When both profit and the shareholder value increase, in course of time, the overall firm value will increase. All these would undoubtely increase its share price in the market as well.
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.
The shareholder wealth maximization goal state that management should maximize the percentage value of the future returns to the owners of the firm?
owners of the firm
Can a partnership firm be a shareholder?
no, a partnership cannot become a shareholder because shareholders are large but a partnership is only between two persons and they share only between themselves.
What is the primary determinants of a firm's value?
- shareholder's wealth - growth - dividend-payout ratio - leverage -
Who company is monopoly in Pakistan?
pakistan telecommunication company limited is a monopoly firm in pakistan. a monopoly firm is the one which has no competitors.
The primary goal of a publicly-owned firm interested in serving its stockholders should be to?
Maximize shareholder value
What is foreign business firm?
You would describe a business firm as foreign, if it is based in a different country than the one in which you live.
What occurs when a value of a firm debts exceeds the value of the shareholder equity?
When a firm's debt exceeds its shareholder equity, it indicates that the company is highly leveraged, which can increase financial risk. This situation often leads to negative implications for the firm's financial health, including higher interest obligations and increased vulnerability to economic downturns. If the firm cannot meet its debt obligations, it may face bankruptcy or restructuring, which could significantly diminish shareholder value. Additionally, investors may perceive the company as a higher risk, potentially leading to a decline in its stock price.
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
