1.2 Profit maximization would have to be from a long-run standpoint to be meaningful at all. However,...
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1.2 Profit maximization would have to be from a long-run standpoint to be meaningful at all. However, it would still be deficient in not considering the risk of alternative income streams. Wealth maximization is a better goal because it takes into account both the stream of income, or cash flow, over a period of years and the appropriate capitalization factor which reflects the degree of risk involved.
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Finance And Accounting For Nonfinancial Managers
ISBN: 978-0071364331
1st Edition
Authors: Samuel C Weaver ,J Fred Weston
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