What does it mean to maximize the value of a corporation?

Expert Solution

Maximization means wealth/value maximization and value of firm is measured by market value of stock. Hence, firm maximizes its value/wealth by maximizing price/ value of the stock. This can be done by keeping a balance between the short term and long term. Decisions should be taken such that it is good for both short and long term.

jeff jeffy answered 1 year ago

What does this statment mean Firms should do everything to maximize shareholder value”?

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What does it mean to maximize the value of a corporation?

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