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Why is the goal of financial management to maximize the current share price of the company's stock instead of maximizing the future share price?
The question is misleading. In fact the goal of financial management is to maximize future share prices. Current share prices are a reflection of past financial decisions. David
What is the agency problem and how might it impact the goal of maximization of shareholder wealth?
The agency problem is a result of the separation between the decision makers and the owners of the firm. As a result managers may make decisions that are not in line with the goal of maximization of shareholder wealth.
Explain why judging the efficiency of financial decision requires the existence of a goal?
The goal of the firm is wealth maximization so efficient financial management requires the existence of goal or objective. The goal of the firm is earning market per share but we can know about best company by finding it's market share price. It is a reflection of the firm's investment, financing, and asset management decisions.
Discuss the relationship between financial and decision making and risk and return would all financial manageres view risk return tradeoffs similarly?
there is a direct relationship between financial decision making and risk and return. each financial decision made by the financial manager will have implication for the overall risk of the firm and its potential returns. All financial decisions are ultimately subjective in nature regardless of the amount of objective information collected as part of the decision making process. as a result, not all financial managers view risk return trade offs similarly. however it is expected they such decision making will be consistent with the goal of the investors that the financial manager represents. good luck......
What goal should always motivate the action of a firm's financial manager?
The goal that should always motivate the action of a firm's financial manager is the uninterrupted financial health of the company.
What is the goal of financial decisions?
To make a profit or a bigger profit. To maximize the wealth of stockholders or price of the shares
How are cost accounting and financial accounting similar?
Simple answer: They both provide useful information to users. Thus is the true goal of accounting. Cost accounting users= managers Financial accounting user= shareholders
Why is the goal of financial management to maximize the current share price of the company's stock instead of maximizing the future share price?
The question is misleading. In fact the goal of financial management is to maximize future share prices. Current share prices are a reflection of past financial decisions. David
What is the agency problem and how might it impact the goal of maximization of shareholder wealth?
The agency problem is a result of the separation between the decision makers and the owners of the firm. As a result managers may make decisions that are not in line with the goal of maximization of shareholder wealth.
Explain why judging the efficiency of financial decision requires the existence of a goal?
The goal of the firm is wealth maximization so efficient financial management requires the existence of goal or objective. The goal of the firm is earning market per share but we can know about best company by finding it's market share price. It is a reflection of the firm's investment, financing, and asset management decisions.
How do you describe a path?
A path is a route or track that provides direction or guides movement from one point to another. It can be physical, such as a trail or road, or abstract, such as a progression of steps or decisions toward a goal.
What is corporate financial management?
Corporate finance is an area of finance dealing with financial decisions business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value while managing the firm's financial risks. Although it is in principle different from managerial finance which studies the financial decisions of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.
What is the most basic question in strategy?
The most basic question in strategy is "What is our goal?" This question helps define the overall purpose and direction that guides all decisions and actions within a strategic framework.
What is the goal of managers?
To procure&utilisation of funds to a company
When can there arise a conflict between shareholders and managers goal?
conflicts between a shareholders goals ana a managers goal may arise when the shareholder decides to by-pass the principle of agency theory which states that the mangers and shareholders should have equal rights of financial decision making unless one via the other is made to be clearly resolved through devastating financial effects. the conflict from here then oon arises.
Discuss the relationship between financial and decision making and risk and return would all financial manageres view risk return tradeoffs similarly?
there is a direct relationship between financial decision making and risk and return. each financial decision made by the financial manager will have implication for the overall risk of the firm and its potential returns. All financial decisions are ultimately subjective in nature regardless of the amount of objective information collected as part of the decision making process. as a result, not all financial managers view risk return trade offs similarly. however it is expected they such decision making will be consistent with the goal of the investors that the financial manager represents. good luck......
What was king piye goal and what was his decisions and what were the consequences?
His goal was to invade egypt
