The Shareholder Wealth Maximization Finance Essay - Free Essay Example

Sample details Pages: 4 Words: 1091 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? To understand and make it clearer, we should pay attention to several definitions of shareholder, stakeholder and theories of shareholder and stakeholder and what the differences between them are, and what debates between them? with the long-term ability of the corporation to remain a going concern. From the above views of the shareholder and stakeholder theory, I support the ideal shareholder wealth maximization should be a superior objective over stakeholder interest because as follows: As we know, from a modern financial perspective the main objective of a firm is to maximize its value to its shareholder. Value is represented by the market price of the companys common stock, which is a reflection of the 3 key variables: timing of cash flows, magnitude of cash flows and the risk of the cash flows that investors expect a firm to generate over time. Normally, profit maximization after tax (ETA) is regarded as the proper objective of the firm, but it is regarded as a goal of maximizing shareholder wealth because total profits are not as important as earnings per share (EPS).ÂÂ  A firm could always raise total profits by issuing stock and using the proceeds to invest in Treasury bills for earnings.ÂÂ  Even maximizing profit per share, but, is not a completely suitable goal, firstly because it does not show the time factor or period of expected interest. Secondly, next mistake of maximizing EPS is that it does not take interest in the risk or uncertainty of the future return flow. So, there are several investment projects will more risky than others.ÂÂ  Consequently, the prospective flow of EPS would not be more ensured if these projects were undertaken.ÂÂ  Besides, a firm will be more or less risky to be conditional on the amount of debt in relation to equity in its capital structure.ÂÂ  This risk is considered as financial risk and it contributes to the uncertainty of the future flow of earnings per share too.ÂÂ  For instance, there are two companies A and B with the same of the expected future EPS. However, the earnings flow of the company A depends significantly more uncertainty than the earnings flow of the company B, so the market price per share of the company As stock may be lower. For the mentioned-above reasons, a maximization objective of EPS may not be the same as maximizing market price per share.ÂÂ  The market price of a firms stock represents the focal judgment of overall market participants as to what the value is of the particular firm.ÂÂ  It mentions to present and prospective EPS, the timing, duration, and risk of these returns, and any other factors relating to market price of stock. The market price is regarded as a performance index of firms progress and this let us know that how well management is running in behalf of its stockholders. In some circumstances the management goals perhaps differ from those of the firm stockholders.ÂÂ  In a corporation (especially it goes public) whose stock is extensively held, stockholders give a bit of their control or influence over the company operations.ÂÂ  When the company control is separated from its ownership, management may not completely try their best to do jobs for the best benefits of the stockholders. They perhaps feel satisfied to run and seek a growth level accepted and concerned a lot with maintaining their own existence than with firms value maximization to its shareholders.ÂÂ  The top important purpose to this management may be its own survival.ÂÂ  Consequently, this leads to unwilling to face with reasonable risks for their fear of making a mistake, hence becoming easily seen to the suppliers of capital from outside. Then, these suppliers may give out a threat to managements existence. To exist over a long time, management has to know to behave by a way that is reasonably suitable with maximization of shareholder value. However, the objectives of th e parties are not always necessary the same.ÂÂ  Maximizing shareholder value, subsequently, is a consistent example for how a firmÂÂ  shouldÂÂ  act.ÂÂ  When management does not follow these guides, we must recognize this as a restriction and make decision for the opportunity cost. This cost is measurable only if we decide what the result would have been had the firm attempted to maximize shareholder value. The purpose of capital markets is to effectively apportion savings in an economy from last savers to last users of funds who invest in real assets. If savings are interested in the top auspicious investment chances, a reasonable economic criteria must exist that manages their flows. In general, the savings allocation in an economy happens on the basis of expected return and risk. The market value of a firms stock is both of these factors. Accordingly, it reflects the markets equilibration process between returns and risk. If making decisions in accordance wi th the likely effect upon the market value of its stock, a business will only be able to attract capital from outside when its investment chances defend the use of that capital in the whole economy. However, this is not to say that management should ignore the questions of social responsibility and stakeholders interests. Namely, Social responsibility of a firm towards shareholders is to ensure good return on investment, towards employees is fair pay and working conditions, towards suppliers is prompt payment and fair procurement process, towards customers is fair price, safe product and after sales service and towards local community is providing jobs and supporting the community development activities, supporting education, and becoming actively involved in environmental issues like clean air and water. Hence, the stakeholders interest is the interest of stakeholders said above. The stakeholder interests sometimes conflict or influence with the shareholders interests in maxi mizing wealth. Furthermore, the criteria for social responsibility and stakeholders interests are not clearly defined, making formulation of a consistent objective function difficult. Therefore, manager has to know to coordinate between the shareholder wealth maximization and its stakeholder interests with superior financial results. In conclusion, maximizing shareholder wealth is a superior objective which a business firm must obligatorily fulfill to survive. If firms do not operate with the goal of shareholder wealth maximization in mind, shareholders will have little incentive to accept the risk necessary for a business to thrive. However, this maximization of wealth is not understood to be at all costs. It will be a contented combination between shareholder and stakeholder interests with best financial results. Depending on each specific situation, each specific circumstance and each specific condition of firms, they can sort out what is the best solution for their organizati on. Don’t waste time! Our writers will create an original "The Shareholder Wealth Maximization Finance Essay" essay for you Create order

A Midsummer Nights Dream Essay Aspects of Love - 755 Words

Love in William Shakespeares A Midsummer Nights Dream Love is a very inaccurate word, as it can be used in many different ways. It can be used to describe an object which one particularly likes, or to describe ones feelings towards a person. However it does not rest at just these two points. Love for someone can be in a material sense (sexual), or in a more moral sense for example. Some of the various aspects of love are mentioned In William Shakespeares, Midsummer Nights Dream. Here we are presented with the various characters, and their conflicts, which all have something to do with love. The most important relationship in the play is that between Titania, the queen of the fairies,†¦show more content†¦This brings me onto the first aspect of love in William Shakespeares play. This man hath my consent to marry her. Egeus demands that Hermia marries Demetrius. This tells us that for Egeus love is not the result of people living together in happiness, and caring for each other. For him love is a kind of business, which is to be sorted out by the lovers parents. It is something that is determined by the father of the family, and not by personal feelings. However the love between Lysander and Hermia for example is one which came from the heart. By this I mean that it was not forced to be, but a natural attraction between the two people occurred, and consequentially they loved each other. Hermia seems to think that you are destined to lovers, and in the following she tries to explain this to her father, Egeus. If then true lovers have been ever crossd, It stands as an edict in destiny: This was also the case on assumes between the fairy king and queen however was not so harmonic, which is why they ended up having the quarrel. This beings me back to the magic potion Oberon got out of the special flower, and carefully dropped onto Titanias eyes, in order to make her fall in love with the next person to pass her. The next person happened to be Bottom whose head was now that of a donkey. This is the other aspect of love discussed inShow MoreRelatedLove and Lust in Loves Labours Lost1292 Words   |  6 Pagesâ€Å"Love is a familiar. Love is a devil. There is no evil angel but Love. (Love’s Labours Lost. 1.2.)† This Shakespearean quote relies on the fact that love can lead to many misfortunes, presented as one of the aspects of love in both William Shakespeare’s â€Å"A Midsummer Night’s Dream†, and Wole Soyinka’s â€Å"The Lion and the Jewel†. One aspect of love demonstrates its brilliant sides, and with it, brings affection, faith, and intimacy. However, it is also noted that an equal aspect of love conveys the consequencesRead More Comparing A M idsummer Nights Dream and Romeo and Juliet Essay1176 Words   |  5 Pagesanother, two stand out from the rest as sharing a great deal in common. Specific, solid parallels can be drawn between Shakespeares plays A Midsummer Nights Dream and Romeo and Juliet. 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Historically, it has been suggested that ‘A Midsummer Night’s Dream’ was written for a wedding, signifying the importance of love in this play, however there is no real evidence to prove thisRead More A Cubist Perspective of Shakespeares A Midsummer Nights Dream2475 Words   |  10 PagesA Cubist Perspective of Shakespeares A Midsummer Nights Dream      Ã‚  Ã‚  Ã‚   The great cycle of the ages is renewed. Now Justice returns, returns the Golden Age; a new generation now descends from on high. - Virgil, Eclogues 1.5    As Virgil stated so many years ago, history is a cyclical phenomenon. The experiences of one age tend to be repeated in future generations. Knowing that, we should not be surprised to find the seeds of modern styles and philosophies sprouting in earlierRead MoreWilliam Shakespeare s A Midsummer Night s Dream And Fool1401 Words   |  6 Pagesfools help them achieve this purpose? 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Helena chases after men, which goes against how women were supposed to actRead MoreTreatment of Women in Society in a Midsummer Nights Dream1775 Words   |  8 PagesTreatment of Women in a Midsummer Night’s Dream The general treatment of women in ancient times such as the Elizabethan and the Ancient Greek era varied in great degrees from the treatment of women in the contemporary twenty-first century. In more ancient eras, women were generally viewed as men’s property and not as individual human beings. Women were not even allowed to choose their spouse. It was common that this type of arrangement was made by their family, and the determining factors were usuallyRead MoreAnalysis Of A Midsummer Night s Dream 1915 Words   |  8 PagesShakespeare’s play, ‘A Midsummer Night’s Dream’, explores this concept, particularly through the use of Puck. In agreement to Harold Bloom’s statement, the following essay will analyse how Puck is significant because, by being so disparate, he is able to show the limitations of the human. This will be done through, first, exploring a definition of the human in relation to the supernatural. Subsequently, the essay will us e a Freudian lense to analyse the morality of Puck and, lastly, the essay will focus onRead MoreFemale Sexuality in Shakespeare4830 Words   |  20 PagesQuestion Compare and contrast the representation of female sexuality in Cymbeline, the Sonnets, and one of the plays: A Midsummer Night’s Dream, Richard II, Hamlet, Antony and Cleopatra, Measure for Measure or King Lear.       Both Cymbeline and A Midsummer Night’s Dream  (AMND)  are both set in a patriarchal environment where both genders grapple for control. 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Health And Safety Effectiveness Of Control Hazards †Free Samples

Question: Discuss aboutt the Health And Safety Effectiveness Of Control Hazards. Answer: Process of ongoing assessment of the effectiveness of control measures in addressing risks and hazards The health and safety rules are key in the work place and a clear process is usually critical to enhance proper actions for the address on the risks and hazards available. The process is able to define the kind of risks available and the measures, which can be taken to mitigate the risks and ensure safer work place[1]. The assessment on the ongoing projects in terms of the risks and hazards and their control involves four key steps, which include: Hazard identification The first step in the risk assessment is to understand the risks and hazard available in the work place. The identification can be chosen from review of past incidents, consultation with workers, inspection of work places, information from equipment and use of creative thinking concerning the hazards and sites[2]. The different work places have different kinds of risks and hazards and therefore key analysis of the hazards in required during this stage. The risk assessment form must be therefore be used to list the hazards and their effects. Assessment of risks The second strep involves assessment of the risk which involves the consideration of the possible outcome if someone is exposed to the hazard. In addition, this step offers the assessment of the likelihood of the hazard occurring. This step involves the analysis of the factors which may cause the risks, the review of the health and safety information, evaluation of the severity of the hazards the harms which will result from the hazards and likelihood of occurrence of the hazard[3]. Other key issues included in the risk control step are the elimination methods, records on updates of risk control measures, the workplace, skill, capacities and experience of experienced work people and system being worked on. Controlling of risks This is the third step in the process and it including the rating of the identified risks and the effectiveness of the control method. Review of the control measures of the risks The last step involves the monitoring and review of the hazard and risk process. This is a continuous process and it helps to access the effectiveness of the identified process of hazard control. completed workplace safety documentation The documentation of the safety in a construction site is key to ensure that the key hazards and risks are well maintained. In each site, the specific activities in the site are noted to enhance the documentation. In addition, the issues are noted specifically to enhance the safety. Name of contractor Maliam construction limited Name of site Palm projext Responsible person Nichols Key safety issue Protective measure Responsible person Occurance level Severity 1. Falling from heights Tool box talk All staff 5 Medium 2. Sliding Educating staff All staff 9 Regular 3. Knock from objects Right tools use All staff 7 Regular 4. Dust inhalation Protective clothes All staff 5 Low 5. Machine cuts Proper use of machines All staff 7 High 6. Accidents from moving machines Signalling of hazards All staff 8 High References Lewis, Kristin C, and Read D. Porter. "Global Approaches to Addressing Biofuel-Related Invasive Species Risks and Incorporation into U.s. Laws and Policies." 84.2 (2014): Ecological Monographs.171-201. Print. Luo, Xiaochun, Xincong Yang, Hongling Guo, Fei Dai, Heng Li, and Dongping Cao. "Hierarchical Bayesian Model of Worker Response to Proximity Warnings of Construction Safety Hazards: Toward Constant Review of Safety Risk Control Measures." 143.6 (2017). Journal of ConstructionEngineering and Management. Print. Mpofu, Thomas P. Z. "An Evaluation of the Effectiveness of Flood Disaster Mitigation Measures in the City of Adigrat, Tigray Region, Ethiopia." 3.2 (2011) Jamba : Journal of Disaster Risk Studies: 384-400. Print. Thomas, P. Z. Mpofu, "An Evaluation of the Effectiveness of Flood Disaster Mitigation Measures in the City of Adigrat, Tigray Region, Ethiopia." 3.2 (2011) Jamba : Journal of Disaster Risk Studies: 384-400. Print. Kristin C, Lewis, and Porter, D. Read. "Global Approaches to Addressing Biofuel-Related Invasive Species Risks and Incorporation into U.s. Laws and Policies." 84.2 (2014): Ecological Monographs.171-201. Print. Xiaochun, Luo, Yang, Xincong Guo, Fei Hongling Heng Li, Dai, and Cao. Dongping "Hierarchical Bayesian Model of Worker Response to Proximity Warnings of Construction Safety Hazards: Toward Constant Review of Safety Risk Control Measures." 143.6 (2017). Journal of ConstructionEngineering and Management. Print.

External and Internal Factors

Question: Evaluate and explain the external and internal factors that influence new business start-ups, enterprise culture, innovation and creativity. Answer: There are different kinds of organization but none of the organizations are categorized as the either the good organizations or the bad organizations. Organizations working in the process of making them; and therefore they keep on adopting new strategies, so that the product and the services that are being sold by these organizations are readily accepted by the customers. Organization strive to survive in this competitive market and if the company or the organizations wants to survive in this competitive market then the contribution of all the members in the organization is important. The role of the entrepreneur, creative people as well as the role of the innovator is very important. Along with it role of the leader or the management is very important for the survival of the organizations. The effective growth and the sustainability of the organization depend on the management of the organization and to be more specific it depends on the leadership quality of the manager in the organization. The leaders mainly have to work for the five main things, which also include achieving the result, or the goal set by the organization. Although the goal could only be achieved by the organization if the organization has the capability of carrying out the other four task preceding it. Among the fur task, the most important task is providing direction to the people working in the organization and at the same time, the leaders should be responsible for setting direction for the people working in the organization (Sigala and Chalkiti 2015). Apart from that, the leaders also responsible for working with all the people there in the organization and at the same time the leaders are also responsible for effective allocation of resources that are available. Lastly, if there are any changes in the organization, the leaders should be able to facilitate those changes that are being introduced in the organization and if the leaders able to carry out all these tasks effectively then achieving the goal that is being set by them will not be a very difficult thing for them. The growth of the organization depends on effective people management and especially on the work that is being carried out by an effective people manager. The people working in the organization possess many kinds of skills but then without the proper and the nurturing of those skills there will not be either growth of the people or the organization. Here, the role of the people manager is very important because a people manager is responsible for the guiding, as well as for praising the people working in the organization and at the same time they are also responsible for identifying the skills of each people working in the organization. The people managers are responsible for the employees and the other people working in the organization; one more important task they should carry out and that is they should be able to identify the future skills that are needed; for the growth of the organization. According to critics the organization, contain at least five very important parts. Among those important five parts the Operational Core, is the most important part because almost every organization and even the small private organization has the Operational Core. The operational core or the Operating core is the sector or segment, which includes those people who plays the most important part in making the product or services that are being offered to the people. Apart from operating core, the other important segment or sector in an organization is the middle line up segment or the sector. The middle line up segment or the sector help in the effectively managing all the managers, is the responsibility of the middle manager. A big organization or a small organization growing or expanding as a big organization is something that should always be taken care of. Therefore, there is a need of a middle manager in the organization, who very effectively supervises the junior as well as the lo wer level managers. The next important part of an organization is the Technostructure of an organization. Well, at this point, the critics differ from each other, but then there are some critics and scholars who believe that in an organization there is a Technostructure; which makes every decision the best decision. The decisions that are being executed in the best way possible include things like technology and setting up new computerized system and things as such. Most decisions that are taken are intangible decisions and not at all a tangible decision. The fourth part of an organization is the support staff of an organization and because there is a support staff in an organization now it is not very difficult for an organization to carry out all their activities. The support staff of the organization helps in smooth functioning of all the sectors from the operating core department to the Human Resource department to even cafeteria. The next and the final part of an organization i s the apex or the top management of the organization. It may contain a single manager of the organization and at the same time, it may contain a board of directors or managers of an organization who are responsible for looking after the workings of the organization so that the works that are being carried out the innovators, creative people and the entrepreneurs, are executed properly. The workings of all the five departments depend on the mutual adjustment that is there between the five departments and at the same time, it depends on the direct supervision. Direct supervision is good for but at the same time; from the managerial point of view, this is something that is very costly as well. The workings of the entrepreneurs, innovators and the creative people also depend on the standardization of the work, which is possible through system and procedures. Apart from the standardization of work, there is also a standardization of output as well as standardization of skills, which depends largely on the ability of each employee working in the organization. The theory also refers to the fact that the job specialization and the behavior specialization as well as trainings are certain tools that help in the effective management of the innovators, entrepreneurs and the creative people. Apart from these tools they are other tools as well, which include things like planning and control system, unit grouping, size, and tools like indoctrination. The theories are there for the organization and the theory state the different tools that an organization may use for the effective management of everything inside the organization. Although, theories are there, one should not forget that most of these theories are written long ago and therefore, in todays organization, in practice there is a need of all the tools or most of the tools and not one tool is sufficient for the working of the organization. Thus, a difference is there between the theory and the practice, what is there in the theory my not always be true in practical sense as well. The Practice: Power Structure The effective management of all the sections of an organization depends of the decisions taken by the senior management of the organization. There are firms or companies where there are people from different profession such as law, marketing, accountancy and architecture and things such as these, in such a firm the operating core is the most important department. The works that are being carried out in the operating core department are the most important. Here the support services are there but then in reality the support services act as a back room support to the people, and here the senior management has a very important role to play. The problem that the organization faces in practice is the problem of power structure. There are many organizations and each organization depends on different kinds of power structure. There is the centralized power structure where there is the manager or the board of directors who take decisions on behalf of the whole organizations. Again, there are other kinds of organizations as well, such as those organizations that provide accounting services to the people and these organizations has more than one senior managers or partners. Therefore, while adopting any policy or strategy the opinion and the voice of these partners are very important and only after the senior managers agree on a particular policy or strategy only then it is adopted in the organization (Gregor and Hevner 2015). The organization who has this kind of structure follows a decentralization of power but when an evaluation of both the structures are made then it is found out that neither is better than the other. Therefore, the theories are there for both kinds of organization but then not only one kind of theory is applicable for different kinds of organization. The effective working of the organization, in practical depends on the use of different kinds of theory that are there. In practical the management and especially the senior management is responsible for taking effective decision so that the new products and services that are being launched in the market has an advantage in this competitive market. Theory vs. Practice The theory state above about the effective management of the organization and the practical situation that the management of an organization faces is quite different from each other. There is a gap between the theory and the practice and therefore often there are certain problems that most of the organization and the management of the organization faces because most of the time, the management faces a difficulty in taking an effective decision, which will help in managing the entrepreneur, the creative people and the innovators, effectively. Although, effective working of the management will not be a very difficult thing if six steps are being followed, and the six steps actually forms a cycle as well. Among, those six steps one of the most important and the first step is the assessment of the leadership (Greener 2016). There should be an effective management of the leadership, which will help the management to find out the ability of the management in the organization so that the fu ture strategies are carried out smoothly and that too without any problem. At times, there are gaps between the leadership and the management capability and the second step is that the organization should find out the gap between the leadership and the management capability. The third step includes, addressing the gaps that are there between the leadership and the management. There is more than one option and to address the problem, which is the cause of the gap that is there between the managerial and leadership ability. The organization should consider more than one option for filling up this gap that is there. The fourth step that is there is choosing the right and the preferable training option. At times, there is a feeling that an effective management of all the three sectors is not possible without training and therefore it is important that training be provided to the employee. Therefore, choosing the right training option is important, because only the correct training optio n could fill the gap that is there between the managerial and the leadership ability. The fifth step includes evaluating the value for money as well as its impact that is required for the development, of the management and the leadership ability. The objectives that are being set by the organization is important for the success of the organization, therefore, it is important review of both the leadership and the management skills and that too at a regular basis so as to reduce the gap that is there between the leadership and management capabilities.