MANAGEMENT

Detailed explanation-1: -Wealth Maximisation refers to all the efforts put in for maximizing the net present value (i.e. wealth) of any particular course of action which is just the difference between the gross present value of its benefits and the amount of investment required to achieve such benefits.

Detailed explanation-2: -Wealth maximization means to earn maximum wealth for the shareholders. So, the finance manager tries to give a maximum dividend to the shareholders. He also tries to increase the market value of the shares. The market value of the shares is directly related to the performance of the company.

Detailed explanation-3: -Wealth maximization is the concept of increasing a firm’s worth to increase the value of stockholders’ shares. Wealth maximization is also known as net worth maximization. A stockholder’s wealth increases when a company’s net worth maximizes. Many businesses consider it superior to profit maximization.

Detailed explanation-4: -A positive NPV project provides a return that is more than enough to compensate for the required return on the investment. Thus, using NPV as a guideline for capital investment decisions is consistent with the goal of creating wealth.

Detailed explanation-5: -Answer: Explanation: wealth maximization means maximizing the wealth of a course of action. wealth maximization means earning maximum wealth for shareholders.