MANAGEMENT

Detailed explanation-1: -Wealth maximization (shareholders’ value maximization) is also a main objective of financial management. Wealth maximization means to earn maximum wealth for the shareholders. So, the finance manager tries to give maximum dividend to the shareholders. He also tries to increase the market value of the shares.

Detailed explanation-2: -The primary aim of financial management is to maximise shareholders wealth, which is referred to as the wealth-maximisation concept. The market price of a companys shares is linked to the three basic financial decisions taken in financial management.

Detailed explanation-3: -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. These returns can take the form of periodic dividend payments or proceeds from the sale of the common stock.

Detailed explanation-4: -In order to maximize shareholder value, there are three main strategies for driving profitability in a company: (1) revenue growth, (2) increasing operating margin, and (3) increasing capital efficiency.

Detailed explanation-5: -Wealth maximization is the concept of increasing the value of a business in order to increase the value of the shares held by its stockholders.