what should the objective of the corporate firm be?
The objectives of a corporate firm must be-
1. Profit maximization for it's shareholders as any business is run on the basis objective of making money
2. Shareholders overall wealth maximization by all long and short term measures which advocates for monetary and non monetary gains
3. Survival of the business in tough times and growth of the business as and when required.
4. Maximization of sales and revenue and Retention and extention of potential and existing customers respectively.
5. diversification and entrance into new product lines should also be part of overall business extention which is a part of business objectives.
What is the goal or objective of the corporate finance team? Select one: a. To maximise the market value (or current share price) of the firm. b. To maximise the sales of the firm. c. To maximise the accounting income of the firm. d. To maximise the number of project ideas undertaken by the firm. e. To maximise the remuneration packages of the firm's executives.
With which two key issues is corporate-level strategy concerned? a. What single business a firm should be in and how it should maintain a competitive advantage with a differentiation strategy in that business b. What businesses a firm should be in and how the corporate office should manage its group of businesses c. How to maximise power over buyers and suppliers d. Which tactical and strategic competitive actions to pursue
1. Explain what corporate goal provides the primary objective for most financial decisions.
The primary objective of the corporate management team is to maximize shareholder wealth. The company's board of directors and the shareholders evaluate and review managerial actions based on the growth in the value of the firm. Based on your understanding of what determines a firm's value, review the following: What does the value of a firm depend on? Option A The ability to generate cash flow that is available to distribute to the company's investors, including creditors and stockholders Option...
What objective lens should be used to review RBC morphology?
What is the layer of CSR (corporate social responsibility) in which the firm establishes a code of conduct that it will employ in its internationalization processes in order to assure the greatest level of transparency? Select one • a. Strategic Corporate Social Responsibility (CSR) b. Traditional philanthropy c. Risk management Corporate Social Responsibility (CSR) d. Task orientation
What is the layer of CSR (corporate social responsibility) in which the firm establishes a code of conduct that it will employ in its internationalization processes in order to assure the greatest level of transparency? Select one: O a. Task orientation o b. Strategic Corporate Social Responsibility (CSR) c. Risk management Corporate Social Responsibility (C d. Traditional philanthropy
What do Corporte raiders known for? If Corporate raiders wants to be looked favorable they should: Multiple Choice take actions that increase current shareholder wealth; they should keep shareholder happy by increasing company's value divide up large profitable entities; bring more profit for management take actions that increase current bondholder wealth; they should keep bondholder happy by issuing more coupon payments create value for themselves through their actions; take more stock options to increase their wealth change the capital structure...
MM Model with Corporate Taxes An unlevered firm has a value of $900 million. An otherwise identical but levered firm has $140 million in debt at a 5% interest rate. Its pre-tax cost of debt is 5% and its unlevered cost of equity is 10%. No growth is expected. Assuming the corporate tax rate is 35%, use the MM model with corporate taxes to determine the value of the levered firm. Enter your answers in millions. For example, an answer...
As we know corporate structure in any publicly traded firm is important aspect for firm’s financial growth. Therefore, what should firm do with the extra earning per share? Multiple Choice should pay it out to shareholders unless the firm can earn a higher rate of return on the cash than the shareholders can earn by investing in the capital market. should always reinvest it in new equipment. should pay it out to management unless the firm can earn a higher...