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Why should the shareholder of a firm care about maximizing a value of a firm?
Wiki User
∙ 11y ago
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
Wiki User
∙ 11y ago
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What are merits and demerits of equity shares?
equity shareholders have a voting rights & there are oner of the campine they have right to select aboard of director these are the care takers of the campine & how many shares shareholder holding is represented intrest of the shareholder .be marits of equity shares:they dont hove a fixed dividend these are risk takers when the campine in loss they dn't get any dividend when the campine in profit's they get more dividend they get dividend after taking of preference shareholders & debentures .
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
What is the difference between payback and discounted payback?
Simple payback method do not care about the time-value of money principle while discounted payback period do take care of this principle in calculation.
Why should credit be used with caution?
Credit can be very costly if not used with care.
Investing in a widely diversified portfolio of stocks does not eliminate the risk that the whole market rises and falls?
no. If you are not a stock riots investor you should diversify because diversification is just protection against ignorance because a real investor won’t care about fluctuations in the market because they will care about the underlying value of a security. If you aren’t a serious investor then you should diversify. if you are a serious investor then you shouldn’t diversify because you know what your doing and you prefer down times so you can buy more undervalued securities.
What is expressions that have the same value?
why should u care
What is an expression that have the same value?
why should u care
How the care value base is used?
to ensure all service users in care settings receive the right care and service they should have
Who created the care value base?
The Care Sector Consortium developed the care value base in 1992. The purpose of the care value base was to make sure every client received the best care for their individual needs.
How do you apply care value base in nursing home?
similarities between policy and care value base similarities between policy and care value base
What are the principles of the care value base in the nhs?
what are the principles of care value base in the nhs
What is the care value base of a nursery?
a care value base is rules se by the guidlines by a teacher
Why is value care important?
BTEC Health and Socail Care:CBV(Care Base Value)CBV(Care Base Value) is important as it helps and support each others rights....
What is care value in a care home?
In this answer, I will refer to "care home" as the private residence of the care recipient. Care value in a care home is best described as a code of ethics that behavior of caregivers inside the private home of the care recipient.
How do you get scratches of a playstation game?
Scratched game discs are of little value unless the disc can be polished to remove defects. There main value should be as a lesson to take better care of them.
To use given data to estimate a value beyond known values?
It is called EXTRAPOLATION and should only be used with great care.
10 plants having economic value and their importance?
mmm i think u should ask a teacher cuz idk or care
