Download Objective Of Wealth Maximization Takes Into Account Mcq PNG
Download Objective Of Wealth Maximization Takes Into Account Mcq PNG. And improvements in the field of the business concern. Share price increase is a direct function of how competitive the company is, its positioning, growth strategy and how it generates profits.
It takes into account present and prospective future earnings per share, the timing and risk of these earnings, the dividend policy of the firm and many other factors that bear. Reasons for time value of money. During evaluation of profit, the risks are not taken into account while wealth maximization includes them along with opportunities.
There is always a conflict regarding which one is more important between the two.
Wealth maximization is the concept of increasing the value of a business in order to increase the value of the shares held by its stockholders. It takes into account present and prospective future earnings per share, the timing and risk of these earnings, the dividend policy of the firm and many other factors that bear. There is always a conflict regarding which one is more important between the two. Wealth maximization means maximization of the shareholder's wealth as a result of increase in share price thereby increasing the market capitalization of the company.