A major advantage of using the maximization of shareholder wealth as the primary goal of the...

A major advantage of using the maximization of shareholder wealth as the primary goal of the firm is that this goal considers
the timing and the risk of the expected benefits to be received
the investor's consumption utility
the value of closely held partnerships
all the above

Solutions

Expert Solution

The major advantage of maximization is that it considers wealth maximization. Wealth is maximized when the cash flows are discounted for the time period in which theya re received. Teh higher the prersent value, more is the wealth maximization.

hence first option is correct

Investors consumption utility will not maximize wealth
the value of closely held partnerships cannot be accurately quantified

jeff jeffy answered 1 year ago

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