Profit maximization and maximization of shareholder
Give the difference between corporate profit maximization and maximization of shareholder wealth?
Expert
Profit maximization relates to profits *only* while shareholder capital also involves total company equity, debt ratios and many of 15 other financial performance measure ratios. Management could concentrate on profit maximization over a longer period of time, like 40 years (Toyota), whereas the shareholder would see stock values and corporate total value increase instantly (get in and get out) (90% of American manufacturers). As management focused on short-term profit maximization, like the expense of long-term sales revenues, then shareholder wealth (stock price) could actually decrease because of the loss of market share.
I have a problem in economics on Formula for the marginal utility. Please help me in the following question. The formula for marginal utility of good X is as: (1) MU = change in U/ change in X. (2) MU = U/X. (3) MU = U1 U2. (4) MU = change in X/change in U.
Assume that an apartment complex is predicted to produce a consistent net $800,000 cash flow yearly in rent, after deducting all recurring variable costs (for example, taxes, utilities, and maintenance). When its current price is $10
Effects of price ceiling: The consequences of price ceiling might be: A) Scarcity of the commodity B) The government might oblige rationing that is, supply of goods in limited q
I have a problem in economics on Division of Labor. Please help me in determining the right answer from the following question. Shannon brewing an espresso drinks whereas Kelly bakes the croissants at their coffee shop are an illustration of: (i) Comp
I have a problem in economics on Technology in supply. Please help me in the following question. The bumper corn crop caused by the good weather would symbolize a raise in: (i) supply. (ii) Consumer’s tastes for corn. (iii) Demand. (iv) The price of corn. <
A perfectly competitive market within the long period: Data firm A: ATC = y2 4y + 12 an
When most firms in a competitive industry experience economic profits, in that case long run competitive pressures tend to cause: (w) greater economic profits. (x) prices to decrease as firms enter the industry. (y) industry output to fall. (z) severa
Vertical integration is the characteristic of all firms which: (1) Control multiple features of the production of an output from raw materials to the retail sales. (2) Operate as international cartels, dealing mainly in non-renewable resources. (3) Mo
When the wholesale price P = $3 per dozen increased, this purely competitive increased farm maximizes profit with producing ___ dozen increased at a total (loss or profit) of $___. (i) zero; loss; $2000. (ii) 2000; loss; $1500. (iii)
Beginning at equilibrium, a new highest legal price for Whopper Slushees set at P1 would: (i) cause people to purchase more Slushees and fewer cones from Dairy Queen. (ii) Reduce total market demand. (iii) Yield surplus demand and a scarcity. (iv) Inc
18,76,764
1936735 Asked
3,689
Active Tutors
1420518
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!