What does it mean to "maximize the value of the firm"? In general, how is value created? What factors determine value and how does each affect the value of the firm?

What will be an ideal response?

To maximize the value of the firm most commonly means to maximize the market capitalization of the firm for shareholders. More specifically, this means to maximize the present value of expected cash flows.

Business

You might also like to view...

If you decided to go into the systems contracting business, which of the following categories would constitute your main area of expertise?

A) computer applications B) database management C) manufacturing D) promotion management E) MRO (maintenance, repair, operating) supplies

Business

Effective organizations need upward communication as well as downward communication. Discuss way leaders can enable upward communication

What will be an ideal response?

Business