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Not for Profit objectives Their mission permeates the way they do business Primary goal is NOT shareholder wealth A not-for-profit organisation’s primary goal is not to increase shareholder value; rather it is to provide some socially desirable need on an Read more
TOTAL SHAREHOLDER RETURN It is the dividend per share plus capital gain divided by initial share price STAKEHOLDERS INTERESTS Stakeholders and impact on corporate objectives We have just seen that the primary objective of a company is the maximisation of Read more
Shareholder wealth maximisation (share price) Maximisation of shareholder wealth is measured by the share price (if the company is listed of course). This is because the share price is simply the value of all future dividends coming to the shareholders. Read more
Definition Financial management is getting and using financial resources well to meet objectives Financial objectives Profit maximisation is often assumed, incorrectly, to be the main objective of a business. Reasons why profit is not a sufficient objective: Investors care about Read more