Definition

Wealth maximization

Shareholders wealth maximization means maximization the net present value of a course of action to shareholders.

 According to Ezra Solomon,” Wealth maximization provide on unambiguous measure or what financial management should seek maximize, in making investment and financing decisions.”

According to I.M. Pandey,” Shareholders wealth maximization means maximization the net present value of a course of action to shareholders. The net present value of a course of action is the difference between the present value of its benefits and the present value of its costs.”

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