Will Profit Maximization Always Result in Stock Price Maximization Some people may ask will profit maximization always result in stock price maximization? Profit maximization does not always result in stock price maximization, because profit maximization can only ensure higher earnings per share not the increased value of a stock. Profit can be manipulated by the managerial … [Read more...] about Will Profit Maximization Always Result in Stock Price Maximization
Finance
Maximize the Value of a Corporation
Maximize the Value of a Corporation A question may arise to our mind that What does it mean to maximize the value of a corporation? To understand and answer this type of question one thing is enough that, maximizing the value of a corporation indicates the value maximization of the wealth of a company. We can say the value of a corporation is maximized when the price of a … [Read more...] about Maximize the Value of a Corporation
What is Finance
What is Finance? Finance is all about taking decisions of financial resources i.e. how money or funds will receive and ensure the right use of resources for maximizing financial benefit. Before 1960 the term finance refers only the collection of funds but after that, the idea was changed. The fiancial function is not only limited to collection of funds/money but also ensure … [Read more...] about What is Finance