Why wealth maximization is superior to profit maximization in today's [PDF]

Dec 15, 2011 - Maximization of profits is regarded as the proper objective of the firm, but it is not as inclusive a goa

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Maximization of profits is regarded as the proper objective of the firm, but it is not as inclusive a goal as that of maximizing stockholder wealth. For one thing, total profits are not as important as earnings per stock. Therefore, wealth maximization is superior in a way that it is based on cash flow, not on the accounting profit. Wealth maximization is superior because it values the duration of expected returns. Since distant flows are uncertain, converting them into comparable values at base period

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facilitated

in his dealings with people as well as in thei...

better comparison of financial projects.

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Distinguish between circulars and notices along with formats?

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Notice - A message / information's bringing to all which will be put up in common place Circular- A message / information's bringin...

Kavita Badola says:

What are the characteristics of a good measure of central tendency?

May 10, 2013 at 10:33 AM

Characteristics of a Good Average (i) It

Being a finance manager what should b priority for him & how we took both this

should be rigidly defined. If an average is left

in equal equation .

to the estimation of an observer and if it is not... Reply

multiplication of two 8 – bit numbers using 8051 To perform multiplication of two 8 – bit

bina babu says:

numbers using 8051 instruction set.

May 10, 2013 at 3:47 PM

Profit is important in yearly basis. It gives happiness and understanding in a short term basis. Profit will be distributed or taxed by Government.. Meanwhile,

ALGORITHM: 1. Get the data in A – reg. 2. Get the value to be ...

the market on long term basis. If the wealth increases, the asset of the company

What is the difference between a qualitative and quantitative variable?

increases. It helps to buy land, property, shares etc. Wealth gives reputation to

Scientific experiments will normally have

future too... Both should be taken into mind while taking decisions. Good luck!

three types of variables; controlled,

wealth should be maximised with top priority. It helps the company to stand in

independent and dependent. Variables are a Reply

condition or fac... division of two 8 – bit numbers using 8051 To perform division of two 8 – bit numbers

prem koirala says:

using 8051 instruction set. ALGORITHM: 1.

August 25, 2013 at 4:14 PM

because wealth maximization as the net present worth or value of the firm. wealth maximization means maximizing the net present value of course of action. some of the argument of wealth maximization are as follows: a) the meaning of the stock price maximization is clear.

Get the data in A – reg. 2. Get the value to be div... Subtraction of two 8 – bit numbers using 8051 To perform Subtraction of two 8 – bit

b) it considers time value of money,

numbers using 8051 instruction set.

c) it considers the risk elements,

ALGORITHM: 1. Clear C – register for

d) incomplete.

Carry 2. Get the data immedi... Reply

What are the different types of business letters? Explain with example. Business letter is an old form of official correspondence. A business letter is written by an individual to an organization or an organizat...

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