Question

In: Finance

List five goals of a firm and Select which goals you will set for your organization...

List five goals of a firm and Select which goals you will set for your organization as a manager and give the reason why you have selected those goals. (260 words

Use this textbook as a guide -Principles of Managerial Finance (14th ed.) by Gitman, Lawrence & Zutter, Chand

Solutions

Expert Solution

Maximize Profit; Some people believe that the firm’s objective is always to maximize profit. To achieve this goal, the financial manager would take only those actions that were expected to make a major contribution to the firm’s overall profits.

EPS: Corporations commonly measure profits in terms of earnings per share (EPS), which represent the amount earned during the period on behalf of each outstanding share of common stock.

Maximize Shareholder Wealth: The wealth of corporate owners is measured by the share price of the stock, which in turn is based on the timing of returns (cash flows), their magnitude, and their risk.

Economic value added (EVA) is a popular measure used by many firms to determine whether an investment—proposed or existing—contributes positively to the owners’ wealth.

Cash Flows: Profits do not necessarily result in cash flows available to the stockholders. Owners receive cash flow in the form of either cash dividends paid them or the proceeds from selling their shares for a higher price than initially paid.


Related Solutions

Hospital questionnaires: spend some time reviewing the mission and goals of the organization you select so...
Hospital questionnaires: spend some time reviewing the mission and goals of the organization you select so that you understand what they are trying to accomplish and why the question year was used for evaluation describe how you would redesign the survey and explain how your revision would improve it.
Select an organization of your choice. You may select a company you have worked for, would...
Select an organization of your choice. You may select a company you have worked for, would like to work for, or design your own organization. Another option is to select two of the most admired companies or two companies of your choice and determine the organizational design and structures they use. In an essay, address the following topics: ? Describe organizational functions as they relate to the organizational structure, culture, and design of the organization(s). ? Define and provide an...
Select an organization – it could be your present company or a previous company for which...
Select an organization – it could be your present company or a previous company for which you worked in the past, or an organization in your personal life (professional, fraternal, charitable, social, etc.) – and describe a situation that demonstrates this organization’s foresight, creativity, and innovation within an ethical model. Some examples situations might include the development of a new product or service, a removal of a barrier to productivity, an action to improve employee productivity, a marketing/advertising campaign that...
You are supposed to select an organization of your choice in the UAE and address the:...
You are supposed to select an organization of your choice in the UAE and address the: alternate means of dispute resolution in business organizations in modern times (available to the chosen organization) laws governing different dimensions of business contracts (as they apply to the chosen organization).
Consider a capital budgeting example with five projects from which to select. The firm needs to...
Consider a capital budgeting example with five projects from which to select. The firm needs to decide how to allocate its available capital based upon the combination of the five projects to maximize returns (based upon net present value (NPV)). The firm has 800 thousand dollars in capital to allocate. • Project 1 costs 100 thousand dollars with NPV at 35 thousand dollars • Project 2 costs 200 thousand dollars with NPV at 80 thousand dollars • Project 3 costs...
Respond to the following in a minimum of 175 words: Select an organization with which you...
Respond to the following in a minimum of 175 words: Select an organization with which you are familiar. How does your selected organization use the different components of the marketing mix (4 P’s)? How does the marketing mix affect the development of your selected organization’s marketing strategy and tactics? How can your selected organization use quantifiable elements to evaluate, monitor, and control marketing effectiveness? Why was it important to Walmart to expand into health care, insurance, tax preparation and many...
1) All goals are indispensable. However, I ask you to select 2 to which you would...
1) All goals are indispensable. However, I ask you to select 2 to which you would give more importance and explain why.
List five ways in which your knowledge of fungi will influence your everyday life.
List five ways in which your knowledge of fungi will influence your everyday life.
Pick a firm/company/organization from your country, which you are familiar with, explain the contextual influences that...
Pick a firm/company/organization from your country, which you are familiar with, explain the contextual influences that can affect its innovation capabilities to compete locally and globally. (1000 words, 70 marks) Explain five ways/ methods the government in your country use to support entrepreneurship. Suggest to your government five methods/ways might/can be used to encourage entrepreneurship in your country. (500 word, 30 marks)
List some inventory items found in your organization. Which of these might be classified as A,...
List some inventory items found in your organization. Which of these might be classified as A, B, or C items? Why? How would you manage these items differently depending on their classification?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT