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Unformatted text preview: market price shares. To put it another way would be that the maximization of the market price shares is the operational substitute for value/wealth/net present value maximization as a decision. Profit maximization also implies that a firm is keener to maximize its profits from business. However, this concept may not be good from the point of view of long term success of the organization. Wealth maximization, however, is the ultimate goal of a financial management. This is also known as Value Maximization or Net present worth maximization. These consider both the quantity and quality dimensions of benefits. However at the same time it will also incorporate the time value of money. WEEK 1 CHECKPOINT 3...
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This note was uploaded on 03/08/2012 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.
- Spring '08