Thursday, July 10, 2014

Wealth Maximization

Wealth Maximization

Shareholder wealth maximization means maximizing the net present value (or wealth) of shareholders. Actually owner’s wealth maximization is reflected through the maximization of market price per share. The market price per share represents the value that market participants place on the market. The principle of shareholder wealth provides a rational guide for running a business and for the efficient allocation of resources in society.



Wealth Maximization

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