Question

What actions can management take to maximise shareholders wealth ? Investment decisions , financing decisions. dividend...

What actions can management take to maximise shareholders wealth ? Investment decisions , financing decisions. dividend decisions, operational decisions

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Answer #1

The Correct Answer should be Investment decision

The Maximisation of shareholders is done when the company is growing and investors saw the potential of huge opportunity in the business, If the firm manages it's investment that yields the best returns then it would help the company to maximise the earnings of the company.

The value of the shareholders is the present value of all the cash flows that the firm is going to generate and if the company's earning will grow then the shareholders value will be maximised.

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