Free

Shareholders Wealth Maximization - Case Study Example

Add to wishlist

Summary

This paper "Shareholders Wealth Maximization" discusses the financial objectives of a corporation that are set up in accordance with its mission statement. The traditional and basic objective of most corporations is to attain shareholders' wealth maximization through increasing financial profitability…

Download full paper File format: .doc, available for editing

GRAB THE BEST PAPER95.4% of users find it useful

Subject: Finance & Accounting
Type: Case Study
Level: Undergraduate
Pages: 6 (1500 words)
Downloads: 1
Author: vwuckert

Extract of sample "Shareholders Wealth Maximization"

CHECK THESE SAMPLES OF Shareholders Wealth Maximization

Financial Mangement: The Viability of the Project Using Net Present Value

What would happen is that the current shareholders would be diluted by an additional issue of shares.... The initial research costs of 500 will have to be capitalized and form past of the initial cash outlay (investment).... This is because the cost can be directly attributable to the cost of the project....

7 Pages (1750 words) Essay

Pay for Performance

Gone are the days, when organizations could stop their employees from forming unions, putting up their ideas, and asking for input in the decision making process… In fact, organizations have come to realize that employees are their most important stakeholders and these are the employees on whom the organizational success and productivity depends the most....

10 Pages (2500 words) Essay

Profitability Measures

The best way of ranking effectiveness should be based on the Shareholders Wealth Maximization.... Return on equity is therefore in line with the firm's objective of wealth maximization.... Market capitalization and return on assets are… Market capitalization reveals the long-term profitability of the company and aims at maximizing the value of shareholders (Freberg & Boland, 2000).... Market capitalization reveals the long-term profitability of the company and aims at maximizing the value of shareholders (Freberg & Boland, 2000)....

1 Pages (250 words) Case Study

Financial Management

Many of the concepts of business… For example, the fact that business ethics teaches that the shareholder's wealth maximization, as a goal, is normally inconsistent with the ethical behavior in that particular business.... For example, the fact that business ethics teaches that the shareholder's wealth maximization, as a goal, is normally inconsistent with the ethical behavior in that particular business.... On the real side of facts, however, the corporate goal of shareholder's wealth maximization does not cause any negative or positive effect to the weight given to the ethical consideration given by market participants (Donald & Nelson, 2000)....

2 Pages (500 words) Essay

Maximization of Shareholder Wealth

Shareholder wealth maximization is the process, which raises the current net value of a shareholder or business capital gains with a goal of attaining the highest possible returns.... Shareholder wealth maximization is a long-term financial goal, which is comprehensive and reflects Maximizing Shareholder Wealth al Affiliation) Shareholder wealth maximization is the process, which raises the current net value of a shareholder or business capital gains with a goal of attaining the highest possible returns....

1 Pages (250 words) Assignment

Accounting Decision Making Process

Dividend payment is preferred by shareholders since that is their source of reward for contributing equity capital.... That is, the movement of value already owned by the shareholders to shareholders.... The increase is brought about as follows: when a firm pays cash dividends, more shareholders, who prefer certain payments, are attracted (Frankfurter, Wood & Wansley, 2003, pp....

8 Pages (2000 words) Essay

Business in Asia-Pacific

The shareholders have an option of either using the equity for financing or debt financing depending on their appropriateness.... In the paper “Business in Asia-Pacific” the author provides the analysis of the cash flow for the current and previous financial periods.... In the evaluation of the joint and mutual venture which is proposed appears to have been done especially by the company management....

12 Pages (3000 words) Assignment

How Finance Managers Can Contribute to the Maximization of Shareholder Wealth

This paper "How Finance Managers Can Contribute to the maximization of Shareholder Wealth" discusses the relationship between corporate management and shareholders' wealth.... The above study does not refer to the maximization of the shareholders' value, however, it refers to the types of supplementary financing available to corporations in case that they face a financial pressure – the survival of a corporation under difficult conditions is considered as necessary in order to proceed to a development of its activities and an increase in the firm's value (as a result to an increase of its shareholders' value as well)....

8 Pages (2000 words) Assignment