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wealth maximisation is the appropriate objective of an enterprise financial theory asserts that wealth maximization is the single substitute for a stock holders utility. when the firm maximizes the stockholders wealth the individual stockholder can use this wealth to maximize his individual utility.it can be calculated as:

stock holder current wealth in a firm =(n.o of share owned) *(current price per share)

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Q: What is the definition of 'wealth maximization'?
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What is wealth in in the term wealth maximization?

.


What is the problems of wealth maximization?

the problems of wealth maximization is the minimumization of wealth minimumization...ask me no more thats final......,


Are wealth maximization and profit maximization related?

Not necessarily


What is wealth maximization in financial management?

Wealth maximization is a term that refers the process done by business that brings in high returns. For instance, making investments is an example of wealth maximization.


What is the wealth maximization?

Wealth maximization is a modern approach to financial management. It is also known as Value Maximization. The focus of financial management is on the value to owners or suppliers of equity capital. The wealth of owners is reflected in the market value of shares so wealth maximization implies the maximization of the market value of the shares or it simply means maximization of shareholder's wealth.


What is meant by the goal of maximization of shareholders wealth?

The goal of maximization of shareholder wealth is meant by; first, in most cases


How does the goal of maximization of shareholder wealth deal with the problems?

How does the goal of maximization of shareholder wealth deal with uncertainty and timing?


What is Three basic reasons is profit maximization inconsistent with wealth maximization?

Profit maximization is a narrow view which accounts for only the difference between sales and costs Wealth Maximization is broader and more philosophical in approach. Wealth maximisation includes not exhaustively culture , synergy, value, potential and wealth


Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization because?

Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization


What is meant by wealth maximization in a corporate finance environment How are corporate securities contingent claims on the firm's value?

Wealth maximization has been accepted by the finance managers, because it overcomes the limitations of profit maximization. Wealth maximization means maximizing the net wealth of the company's share holders. Wealth maximization is possible only when the company pursues policies that would increase the market value of shares of the company.


What are the basic objectives of financial management?

The objective of financial management is wealth maximization rather than profit maximization. Wealth maximization means the total value of the firm.


Explain wealth maximization and value maximization objectives of financial management?

Wealth maximization of financial management focuses on increasing fixed and current assets while value maximization focuses to strengthen intangible assets.