Samantha Karp fin mngmt goals

Samantha Karp fin mngmt goals - would be to maximize wealth...

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Samantha Karp Financial Management Goals CheckPoint Some may suggest that the highest goal to achieve in financial management is to earn the highest possible profit for the firm. Making sure each decision is approached at the best interest for the firm’s earnings. However when thinking about what is best for the firm, one must look at how the earnings are valued not about how much they have. An investor is going to look for a business that has an overall value rather than what they earned in a quick period of time. The investor will take into consideration if the firm is consistent over a longer period of time. A more broad goal for financial management
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Unformatted text preview: would be to maximize wealth for the shareholders by achieving the highest value for the firm. This goal is a bit harder to control since a firm cannot directly affect the earnings, but only stay consistent with what it is that shareholders want. Management can directly affect stockholder wealth by not maximizing their wealth. When the firm puts their needs before what the stockholders wants than that’s when stockholders will start to pull away from the firm. By following these goals a firm can have faith that stockholders will be interested....
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This note was uploaded on 10/30/2010 for the course FIN 320 ASDFI taught by Professor Asdf during the Spring '09 term at University of Phoenix.

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