Write a 200 word paper describing the goals of financial management. The description should include how earnings are valued, how shareholder wealth can be maximized, and how management decisions affect stockholder wealth.© BrainMass Inc. brainmass.com October 9, 2019, 11:20 pm ad1c9bdddf
The earnings are valued between the stockholders and management. Imagine that the firm is considering a new investment. The new investment is expected to favorably impact the share value, but it is also a relatively risky venture. The owners of the firm will wish to take the investment (because the stock value will rise), but management may not because there is the possibility that things will turn out badly and management jobs will be lost. If management does not ...
The expert describes the goals of financial management. The earnings are valued and how shareholders wealth can be maximized.