Question

As a member of management of a corporation, how do you maximize shareholder wealth?

As a member of management of a corporation, how do you maximize shareholder wealth?

Homework Answers

Answer #1

As a member of management of corporation, I should be looking for embracing full social responsibility and working as a complete agent for the shareholders who would be my principal.

I should always be striving towards achieving the maximum output out of my efforts and I should always be looking for being transparent as well as doing as per my code of conduct and ethics.

I would look for ever increasing into any kind of financial malpractices as well as I would also look for never do any kind of insider trading or pass onto any price sensitive information to any kind of relative so that that lead to unnecessary private information leakage.

I should work in the best interest of the shareholders and the company which lead maximization of companies wealth leading to maximization of shareholders wealth.

I would work as a fiduciary agent for shareholders of the company.

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
18. The goal of financial management is to: A. maximize net income. B. maximize shareholder wealth....
18. The goal of financial management is to: A. maximize net income. B. maximize shareholder wealth. C. maximize working capital. D. minimize costs.
1. If a company’s board of directors wants management to maximize shareholder wealth, should the CEO’s...
1. If a company’s board of directors wants management to maximize shareholder wealth, should the CEO’s compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm performs (that is, the company's performance)?
In 150 words, How does the firm maximize shareholder wealth?
In 150 words, How does the firm maximize shareholder wealth?
Discusses the goal of the firm. Should the firm maximize shareholder wealth? Maximize profit? Does profit...
Discusses the goal of the firm. Should the firm maximize shareholder wealth? Maximize profit? Does profit maximization lead to the highest possible share price?
Should businesses attempt to solve societal ills, or should businesses merely maximize shareholder wealth? Some individuals...
Should businesses attempt to solve societal ills, or should businesses merely maximize shareholder wealth? Some individuals argue that the purpose of a business is to make a profit, and maximize shareholder wealth, while others argue that a business has a corporate social responsibility to go beyond the financial interests of shareholders to support social causes. On which side of the debate do you fall? Explain your position.
Compare and contrast the goal of profit maximization and the maximization of shareholder wealth. Do any...
Compare and contrast the goal of profit maximization and the maximization of shareholder wealth. Do any 3 worth 2 marks each. Profit Maximization Maximize Shareholder Wealth Objective Emphasis Risk and Uncertainty Advantage Recognition of Timing of Return Expectations and Goodwill
It is known that financial managers should act to maximize shareholder wealth. Why are the efficient...
It is known that financial managers should act to maximize shareholder wealth. Why are the efficient markets hypothesis (EMH), the CAPM, and the SML so important in the accomplishment of this objective?
What should be done to maximize shareholder wealth and thus the value of the firm? a....
What should be done to maximize shareholder wealth and thus the value of the firm? a. Slow down the cash receipt of the organization. b. Increase the risk level of the firm. c. Decrease the size of expected cash flow of the company. d. Raise the free cash flows of the business.
There are many potential goals of a corporation, such as: minimize costs, maximize sales, maximize employment,...
There are many potential goals of a corporation, such as: minimize costs, maximize sales, maximize employment, maximize earnings, maximize shareholder wealth, maximize dividend payments, etc. Which one is the best for the long-term health of the company and society?
T or F 11) In the Shareholder Wealth Maximization Model the primary goal of management is...
T or F 11) In the Shareholder Wealth Maximization Model the primary goal of management is to maximize the wealth of all stakeholders. T or F 12) Poor firm performance is more likely to lead to takeover or firm restructuring under the Shareholder Wealth Maximization than under the Stakeholder Capitalism Model. T or F 13) LIBOR is the London Inter-Bank Offer Rate and represents the rate at which London banks are willing to lend to other London banks. T or...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT