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Why is wealth maximization used as the goal for financial decisions?

Why is wealth maximization used as the goal for financial decisions?

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Expert Solution

Most of the companies work on the model of profitability, i.e. trying to generate maximum value for all the stakeholders. Moreover, the more wealth the company is generating over the time, the better and new projects the company will be able to take, so in all the financial decisions wealth maximization is always a primary criterion.

jeff jeffy answered 2 years ago
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