What is the rationa for selecting 'maximizing shareholders' wealth as the goal of the firm?

How does the NPV relate to the goal of maximizing shareholders wealth?

hi people

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.

Maximizing shareholder wealth means maximizing the?

Maximizing shareholder wealth means that the company reduces re-investment of profits and increases the dividend payouts. Dividend payouts are the benefits paid out to shareholders after a financial period.

Explain the rationale for selecting shareholders wealth maximizatio as the objective of the firm?

Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal

Would management pursue goals other than shareholder wealth maximization?

Of course yes, but maximizing shareholder wealth would be the primary goal of any organization that has shareholders.

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.

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.

What is meant by wealth maximization?

That means maximizing the net present value of the wealth of the shareholders. For Example in taking an investing decision management should choose that project for investment, which will give maximum return to the share holders. Similarly in other financial Decision and for that matter any decision should be taken to with the objectives of maximization of wealth of the shareholders. The objective of the shareholders wealth maximization takes care of the question of timing and risk of the expected benefits. These problems are handled by selecting an appropriate rate(the shareholders opportunity cost of capital) for calculating (discounting) the Expected flow of the future flow of the benefit. It is calculated by this formula: RETUN=RISK FREE RATE+RISK PREMIUM Naman Garg PGDM INMANTEC, Ghaziabad 09837258697 That means maximizing the net present value of the wealth of the shareholders. For Example in taking an investing decision management should choose that project for investment, which will give maximum return to the share holders. Similarly in other financial Decision and for that matter any decision should be taken to with the objectives of maximization of wealth of the shareholders. The objective of the shareholders wealth maximization takes care of the question of timing and risk of the expected benefits. These problems are handled by selecting an appropriate rate(the shareholders opportunity cost of capital) for calculating (discounting) the Expected flow of the future flow of the benefit. It is calculated by this formula: RETUN=RISK FREE RATE+RISK PREMIUM Naman Garg PGDM INMANTEC, Ghaziabad 09837258697

Contrast the objective of maximizing earning with that of maximizing wealth?

\yes it is

Contrast the objectives of maximizing earning with that of maximizing wealth?

\yes it is

How a financial manager can maximize the wealth of shareholders?

effects of donations and sponsership on maxsimising shareholders wealth?

Shareholders wealth is measured by the current?

how is wealth measured?