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Question 2 (40 Marks) “Maximizing shareholder wealth is the main goal of financial management!” was cited by one...

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Finance

Question 2(40 Marks)

“Maximizing shareholder wealth is the main goal of financialmanagement!” was cited by one classmate. Do you agree? Discuss yourviewpoints within 500 words. Use examples to illustrate yourarguments and justify your conclusion.

Question 3(40 Marks)

Someone said “Investments with high risk usually come with highreturn”. Do you agree? Discuss your viewpoints within 500 words.Use examples to illustrate your arguments and justify yourconclusion.

Answer & Explanation Solved by verified expert
4.5 Ratings (705 Votes)
Yes I agree One of the main objectives of Financial Management is to maximize shareholders wealth Shareholders wealth increases with the increase in market value shares and thus it leads to increase in market capitalisationFinancial management is basically concerned with managing the funds of company in such a way that increases the value of    See Answer
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Question 2(40 Marks)“Maximizing shareholder wealth is the main goal of financialmanagement!” was cited by one classmate. Do you agree? Discuss yourviewpoints within 500 words. Use examples to illustrate yourarguments and justify your conclusion.Question 3(40 Marks)Someone said “Investments with high risk usually come with highreturn”. Do you agree? Discuss your viewpoints within 500 words.Use examples to illustrate your arguments and justify yourconclusion.

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