Welcome to Zomak Assignments' SlideShare presentation on "Strategies to Maximize Shareholders' Wealth." In this informative session, we delve into the intricacies of shareholder wealth maximization and provide valuable insights into strategies that can drive financial success for both corporations and individual investors. Contact us : Just DM on @zomakassignment Check Our Website: www.moodlemonkey.com Check out our : https://twitter.com/zomakassignment Check out our : https://in.pinterest.com/zomakassignment10/ Check out our : https://www.facebook.com/profile.php?id=100092178241448 Check out our : https://www.linkedin.com/in/akshay-goswami8782226/

1. Strategies to maximize shareholders wealth

2. What is meant by share holder wealth maximization?
Shareholder wealth maximization means when manager of a
company tries to maximize the wealth of their firms.
So, basically they increase the share price of that company.
And with it the shareholders wealth and firm’s value
increases with increase in its share price.

3. How to maximize their wealth?
Somewhere it is critical to maximize the wealth of the
shareholder. It possess a determinant importance with the
failure and success of the organization.
Maximization of share holders wealth holds key functions that
helps in generating profits for the organization.
By doing this the company generally increase their share price
(Stout, 2012).

4. How to maximize Shareholders wealth
Company tries to explores ways through which they can
increase the wealth, this can be done by investing, by being
profitable, and assessing the cash smartly, generate wealth
for the company and shareholders (Stout, 2012).
For profit maximization general techniques and procedures
followed by the organization include placing the resources
into ventures or land, structuring their credits, and by
boosting the costs of their stocks (Queen, 2015).

5. Regardless of the measure whether it is quantifiable profit,
development, benefit, comparable measurement, companies
generally search for the opportunities through which they
can enhance the execution in their business. This thing led to
increase in the wealth of the shareholders.
Rather than this there are many procedures with whose help
the company can raise more wealth (Queen, 2015).

6. Approaches to increase the wealth of the shareholder
1. Rise in Unit Price:
By rising the prices of the item, by accepting that the company
will continuously sell on total that is related, or by selling it n
higher prices, these are the things that hep the company in
generating more wealth and profit.
There are various obstructions involved in this technique like,
actual value that is set by the customers, price that is indicated
by the competitors.

7. 2. By selling additional units
If the company possess fixed prices, or if they raise fixed costs
at a ratio which comparatively less than the sales growth then it
will help in diminishing the price per unit.
And can become an addition in the wealth of the shareholder.
Or it can be done by selling additional items, this will directly
affect the profits of the shareholders (Sharfman, 2014).

8. To catch prominent shares in the market the company
should include practicality and features that can help in
surpassing the competitor.
It can be done by offering value added services, or by
delivering orders quickly.
There are various plans and techniques that can help in
gaining growth in sales and are used to magnify the growth
related to sales (Denis, 2016).
And lead to increase in the wealth of the shareholder.

9. 3. By increasing use of fixed cost
To increase the fixed cost the company need to sell more
items along with the regular matter that is related with
lessening the fixed cost per unit.
By increasing the sales of greater products by keeping the
fixed cost constant the company can justifying and joining
their fixed costs (Sharfman, 2014).

10. 4. By doing reduction in the unit price
Diminishing the unit is extensively and greatest known
wealth formation plan cost of the shareholder.
It is usually done for the profitable purpose and work as the
focal point for the improvement of actions.
There is a extended progress strategy i.e. rundown and some
tools that lead to decrease in the price.

11. Techniques that are used to measure wealth of shareholder’s
The wealth of the shareholder can be assessed by approximation
of market based on the common stock possessions of the
stakeholders.
1. To calculate the wealth of the shareholder, start it by
deducting the preferred profits of the organisation from the
total income.
2. To calculate the profit of the organisation, divide the current
income of the organization with total no. of shares.
3. To the profit per share add stock cost.

12. Why does this matter?
Wealth maximization is based on the long term objective
used for amplifying the wealth of the shareholder by
expanding business estimation that is directed by company.
They are the owners of the company and if the organisation
progress well then then the gains of the stakeholders also
increases. It is the vital objective of the organisation.

13. Advantages related to maximization of wealth
1. It does not depends on the profits.
2. It depends on the income
3. It is more superior then the expansion of wealth
4. It generally focuses on the risk factors while providing
discounts (Denis, 2016).

14. Disadvantages related to maximization of wealth
1. It is a descriptive idea and not perspective idea
2. When management and ownership are separated then
create difficulties.
3. The objectives that are related to it are unclear.

15. Conclusion
The most significant objective of the organization is to boost
the wealth of the shareholder.
A successful manager is more thoughtful towards the
methods that are essential for generating benefits in the
organization. The basic benefit is to needed to build profits
that are very commonly paid with every stock that is
common and establishes the wealth of shareholder.

16. References
Denis, D. (2016). Corporate governance and the goal of the firm: In defense of
shareholder wealth maximization. Financial Review, 51(4), 467-480.
Queen, P. E. (2015). Enlightened shareholder maximization: is this strategy
achievable?. Journal of Business Ethics, 127(3), 683-694.
Stout, L. A. (2012). New Thinking on" Shareholder Primacy". Accounting, Economics,
and Law, 2(2).
Sharfman, B. S. (2014). Shareholder wealth maximization and its implementation
under corporate law. Fla. L. Rev., 66, 389.