MANAGEMENT

Detailed explanation-1: -Shareholder wealth maximization is concerned with the maximization of a firm’s stock price. The shareholder wealth maximization goal states that management should seek to maximize the present value of the expected future returns to the owners (that is, shareholders) of the firm.

Detailed explanation-2: -Shareholder wealth maximization means that a company’s primary goal is raising its stock price.

Detailed explanation-3: -Profit maximisation is a process business firms undergo to ensure the best output and price levels are achieved in order to maximise its returns. Influential factors such as sale price, production cost and output levels are adjusted by the firm as a way of realising its profit goals.

Detailed explanation-4: -EPS maximization is concerned with maximizing net income.

Detailed explanation-5: -Shareholder wealth maximization is a norm2 of corporate governance that encourages a firm’s board of directors to implement all major decisions such as compensation policy, new investments, dividend policy, strategic direction, and corporate strategy with only the interests of shareholders in mind.