StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Assignment for Shareholder Wealth Maximization - Essay Example

Cite this document
Summary
Assignment for "Shareholder Wealth Maximization" Table of Contents Table of Contents 2 Introduction 3 Shareholder Wealth Maximization 3 Goals and Objectives of the Management 4 Analysis and Recommendation 5 Conclusion 5 Reference 6 Bibliography 7 Introduction In this modern era of business there is a pressure on the private companies to stick to the rule of ethics and to give more priority to shareholders’ wealth maximization than the objective of profit maximization…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.9% of users find it useful
Assignment for Shareholder Wealth Maximization
Read Text Preview

Extract of sample "Assignment for Shareholder Wealth Maximization"

Download file to see previous pages

Shareholder Wealth Maximization The management of a company finds it tough when they are considering that what should be their goal- profit maximization of the company or the wealth maximization of the shareholders. The profit maximization objective can be pursued by the company management for the short term period. The company should has the objective to gain as much as profit by using the resources effectively and optimally. At the other side the company should take the long term objective of the stockholders’ wealth maximization.

The stockholders of the company are interested for getting the returns for the long term as well as short term. The wealth maximization objective should be undertaken by the company management for the long term as it considers the following factors. The risk or uncertainty associated with the performance and the return associated with the company performance. The wealth of the company for the long term is analyzed as the company has to plan for providing the long term return. The timing of providing the returns is also considered (Shim and Siegel, p.2). If the company takes the long term objective then they can also fill their short their objective.

If they are meeting the stockholder’s objective then the stockholders also invests in the company, as a result the investment will increase and the performance of the company would be better if they utilize those resources effectively. From the researcher point of view shareholder’s wealthy maximization should be the ultimate goal of the company. Goals and Objectives of the Management For analyzing the goals and objectives of a company the researcher has selected Coca-Cola Company which is listed in the New York Stock Exchange (NYSE) (MSN Money, “Coca-Cola Co”).

The goals and objectives of the company are as follows. The company’s objective is to start at least one program related to physical activity in the countries where they are operating by the end of 2015. Reducing the carbon emission from the manufacturing unit of the company. For the development of the communities they are associating with the management has planned to return 1% of the operating income to the communities. Packaging material efficiency improvement. Improvement of the water efficiency.

The wastewater treatment improvement is among the main goals of the company (The Coca-Cola Company, “Global Sustainability- Select Goals and Targets”). The goals of the vision 2020 package of Coca-Cola is to make the profit margin double from now, enhance their portfolio They work with 300 bottling partners and are working for the growth target in terms of the operating income and unit cases of volume (The Coca-Cola Company, p.2-33). Among these goals the strategic objectives of the company like increasing the operating income, increase the unit case of volume, enhancing the portfolio or improving the packaging material efficiency improvement support the shareholders’ wealth maximization goals when the company is also maintaining the corporate social responsibility.

They have the goals of developing the communities in the countries they are operating; also they are working for being environmental friendly through their projects. Analysis and Recommendation Coca-Cola Company has a sustainable long term

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Assignment for Shareholder Wealth Maximization Essay”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1441746-assignment-for-shareholder-wealth-maximization
(Assignment for Shareholder Wealth Maximization Essay)
https://studentshare.org/finance-accounting/1441746-assignment-for-shareholder-wealth-maximization.
“Assignment for Shareholder Wealth Maximization Essay”, n.d. https://studentshare.org/finance-accounting/1441746-assignment-for-shareholder-wealth-maximization.
  • Cited: 1 times

CHECK THESE SAMPLES OF Assignment for Shareholder Wealth Maximization

Business Strategy: Exploring Elements of a Successful Business Strategy

The companies are striving for more and more profits and maximization of their shareholders' wealth.... The author states that a focused business strategy is a key element to corporate success and balance sheet results.... The author also presents a business strategy for the Volkswagen group for making it the leading automaker by 2018 – economically and ecologically....
4 Pages (1000 words) Assignment

Wealth maximization concepts

MBA/540 wealth maximization Concepts Worksheet Assignment Week The first week's assignment focuses on creating a worksheet you can use in planning to gain knowledge about key course concepts and to recognize application of those concepts in the real world.... wealth maximization Concepts Worksheet Your Name Goes Here University of Phoenix wealth maximization Concepts Worksheet Concept Application of Concept in the Scenario Reference to Concept in Reading Global expansion In the case, all the business organizations are interested in pursuing growth by taking advantage of the available global opportunities....
3 Pages (750 words) Assignment

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

Assignment Accounting and Finance

A perfect market further pertains to a free or boundary less market for new entrants to become a part of it and existing ones to move away… In such a market, there is limited to no space of having control over the prices of products and usually, low prices to consumers are charged due to vigorous competition....
10 Pages (2500 words) Assignment

The Brown Bear Leisure Center

The Company's primary activity is offering leisure services including gym classes.... Brown Bear Leisure runs a fitness center on behalf of Domdon's local council, from which BBL leased the… The fitness center provides not only gym lessons but also a wide array of fitness classes like yoga, dance, and aerobics....
9 Pages (2250 words) Assignment

Company Financial Report

All the above factors have to be in alignment with the ultimate objective of any business, maximising profits and wealth.... The assignment 'Company Financial Report' dwells on the financial condition of a publicly traded and Stock Exchange Listed Company with the aim of keeping the current investors updated about the stock movements and pricing, which forms a crucial element of the financial aspects of the Company's financial activities....
17 Pages (4250 words) Assignment

Strategic Management of Corporate Real Estate

Whatever be the real estate strategy of a firm, the primary objective of the same shall be to increase shareholder value.... This paper "Strategic Management of Corporate Real Estate" focuses on the most basic 3 factors of production which are land, labour, and capital.... Whereas labour and capital have attracted significant research, and various new factors such as technology have been added....
8 Pages (2000 words) Assignment

Corporation Social Responsibility

The researcher of this essay aims to analyze the Corporate Social Responsibility (CSR) framework, that is a scheme, which serves the above need.... Despite its importance, CSR has not been adequately supported by the state.... Because of the lack of sufficient legislative support.... hellip; The current paper focuses on the examination of the various aspects of CSR....
19 Pages (4750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us