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Profit maximization does not reflect (1) the timing of profits and (2) the

riskiness of different operating plans. However, both of these factors

are reflected in stock price maximization.

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17y ago

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Under what conditions might profit maximization not lead to stock price maximization?

Under what conditions might profit maximization not lead to stock price maximization?"


Under what condition might profit maximization not lead to stock price maximization?

There are various conditions under which profit maximization may not lead to stock price maximization. Some of them include outstanding shares and assets falling below the cost of the debt among others.


What are the difference between value maximation and profit maximation?

Value maximization and profit maximization are very much related, the main difference being- value maximization means increases in owners' wealth achieved by maximizing of the value of a firm's common stock. profit maximization is the process by which a firm determines the price and output level that returns the greatest profit. the other difference among the two could be sited as- value maximization is seen as long term objective of a firm, whereas profit maximization is generally a short term objective.


What is the difference between the ask and bid price of a stock?

The ask price is the price a seller is willing to accept for a stock, while the bid price is the price a buyer is willing to pay for the stock. The difference between the two is called the spread.


Is stock price maximization good or bad for the society?

of course it is bad research about it


Is stock price maximation good or bad for society?

The same actions that maximize stock prices also benefit society. Stock price maximization requires efficient, low cost operations that produce high quality goods and services at the lowest possible cost. Stock price maximization requires the development of products and services that consumers want and need, so the profit motive leads to new technology, new products and new jobs. Also, stock price maximization necessitates efficient and courteous service, adequate stocks of merchandise and well located business establishments.


What does shrinkage means in retail?

Shrinkage is the difference between the stock on the inventory book and the actual physical stock. Shrinkage is also deifned as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock. Shrinkage % is calculated as the difference between the value ( retail price ) of the stock on the inventory book and the value of the ( retail price ) actual physical stock by the retail sales of this volume


What is the difference between the bid and ask stock price?

The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask price is known as the spread.


What is the difference between profit maximization and wealth maximization?

Shareholder wealth (more commonly referred to as shareholder value) is talking about the value of the company generally expressed in the value of the stock. Profit maximization refers to how much dollar profit the company makes.


What is the difference between the bid and ask prices in stock trading?

The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The difference between the bid and ask prices is known as the spread, which represents the cost of trading a stock.


How does the goal of stock price maximization benefit the society at large?

The society benefit throughconsumer benefitemployee benefit


Can you explain the difference between bid and ask stock prices?

The bid price is the highest price a buyer is willing to pay for a stock, while the ask price is the lowest price a seller is willing to accept. The bid price is what you can sell a stock for, and the ask price is what you can buy a stock for.