Public companies can deliver value to shareholders through wealth maximization:
Wealth Maximization of the business-
The wealth of a firm is interpreted is the market price of the
firms.
The market price of a firm represents 1.The judgment of all
market participants about what should be the value of the
particular firm.
2. It takes into account
a. earnings per share,
b. risk of these earnings
c. dividend policy.
and many other factors.
It's is public companies Goal to Maximize the Wealth of the company for its shareholders.
In Amazon Case: We can look at the earnings report and Stock price movement for its share.
Amazon share price on 7th November 2014 was $300 and today (7th November 2019) it's $1800.
It is a 500% return in just 5 years time. Which is magnificent.
Amazon EPS in 2008 was $1.49 and in 2018 it was $20.14
Amazon has created a lot of wealth for its shareholders- which is evident from which stock price movement and earnings report - 500% return reflects it.
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i need a 4 page essay? and it has to do with Amazon below it will tell you what you need to do the SUBJECT has to do with ACCOUNTING. Explain in your own words if the management of your firm is working for the shareholders or just working to maintain the company in operational conditions. In other words, which one is getting wealthy, management or shareholders? Explain with facts and events. In order to minimize expenses or improve the...
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