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.

Please do rate me and mention doubts, if any,, in the comments section.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How do financial managers process to satisfy their objectives to shareholders? Courseļ¼šBusiness Finance Use your own...
How do financial managers process to satisfy their objectives to shareholders? Courseļ¼šBusiness Finance Use your own word to answer
When a company gets into financial distress, the actions managers and shareholders take to protect their...
When a company gets into financial distress, the actions managers and shareholders take to protect their interests often increase company value.(True or False)
How do accountants and financial managers differ in their use of financial information? Why is cash...
How do accountants and financial managers differ in their use of financial information? Why is cash flow more significant to a financial manager than it is to an accountant?
Whether managers act in the best interest of shareholders depends on the manner in which managers...
Whether managers act in the best interest of shareholders depends on the manner in which managers are compensated and whether managers be replaced if they do not pursue shareholder goals. T or F
a. Why is it important for financial managers to understand the valuation process of shares and...
a. Why is it important for financial managers to understand the valuation process of shares and bonds?   b. What are the three key inputs to the valuation process?
Financial managers should only accept investment projects that: earn a higher rate of return than shareholders...
Financial managers should only accept investment projects that: earn a higher rate of return than shareholders can get by investing on their own. can increase the firm's market share. increase the current profits of the firm. earn a higher rate of return than the firm currently earns on its existing projects.
what are three methods shareholders can use to motivate managers to work in the shareholders best...
what are three methods shareholders can use to motivate managers to work in the shareholders best interest?
How would you prioritize the 6 major objectives of healthcare financial management?
How would you prioritize the 6 major objectives of healthcare financial management?
Describe the process of using and changing between the different microscope objectives. What are the different...
Describe the process of using and changing between the different microscope objectives. What are the different objectives? Which do you start with? What do you need to do prior to changing objectives?
How can managers target owners' wealth when different owners (shareholders) have different amounts of wealth and...
How can managers target owners' wealth when different owners (shareholders) have different amounts of wealth and may follow different investment strategies?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT