The biggest difference between profit maximization vs. maximizing shareholder wealth as a goal is O profits are not important in the long-term O profit maximization is always the priority O making large profits at least once every few years is important to offset years with losses, which will maximize shareholder wealth O shareholder wealth maximization is increasing the stock value as high as possible and this is also related to having financial consistency

The biggest difference between profit maximization vs. maximizing shareholder wealth as a goal is O profits are not important in the long-term O profit maximization is always the priority O making large profits at least once every few years is important to offset years with losses, which will maximize shareholder wealth O shareholder wealth maximization is increasing the stock value as high as possible and this is also related to having financial consistency

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter2: Developing The Business Idea

Section: Chapter Questions

Problem 1fM

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Suppose a company ABC is forecasting an increase in sales. By using AFN model of forecasting which of the following statement would decrease the additional fund requirement of the company? the company has low profit margin The company is operating at full capacity the company has low dividend payout ratio ☐ The increase in sales growth percentage will be high
Financial managers should aim to maximize the current value per share of the existing stock to: OF OD Oc increase profitability of the firm parantee the company will grow in size at the maximum possible rate increase saves of the firm Od best represent the interests of the current shareholders O increase the current dividends per share Previous page
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