The primary goal for a firm's financial managers is to: a maximize earnings per share b maximize long run profits c minimize firm risk d maximize shareholder wealth e none of the.
One problem with maximization of shareholder wealth as a goal is that it ignores risk taken by the firm's financial decisions false the goal of profit maximization ignores the risk of. Shareholder wealth is important because the shareholders own the company, and in a capitalist society, the measure of a company's value is in the profits it generates for the owners the.
Maximizing shareholder value: the goal that changed corporate america economy — that a company’s primary purpose is to maximize shareholder value the overwhelming drive to maximize. Shareholder wealth maximization is the attempt by business managers to maximize the wealth of the firm they run, which results in rising stock prices that increase the net worth of.
This is “is shareholder value maximization the right objective shareholder value is the best measure of wealth creation for the firm shareholder value maximization produces the greatest. The concept that the primary goal for a company is to increase the wealth of its shareholders (owners) by paying dividends and/or causing the stock price to increase in the shareholder.