Question

How do financial managers process to satisfy their objectives to shareholders?

How do financial managers process to satisfy their objectives to shareholders?

Homework Answers

Answer #1

Maximising wealth of shareholders is one the main objectives of a financial Manager. They accomplish this objective through number of ways :

1. Advising their clients at the right time.

2. Minimising the risk for a given return or maximising the profit for a given risk.

3. Help them in gaining profits higher enough than risk free rate.

4. They also provide returns keeping time value of money in account.

5. Efficiency and consistency are also their objectives.

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