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Unformatted text preview: maximization of the market price of shares is the operational substitute for value/wealth/net present value maximization as a decision. Profit maximization implies that a firm is keener to maximize its profits from business. But this concept is not good from the point of view of long term success of the organization. However, wealth maximization is the ultimate goal of financial management. It is also known as value maximization or net present worth maximization. It considers both quantity and quality dimensions of benefits. At the same time it also incorporates the time value of money....
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This note was uploaded on 01/04/2011 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.
- Spring '08