Question
1. The ultimate objective of financial management is maximizing shareholders wealth. a. Discuss what are the different strategies that could be implemented to maximize shareholders
1. The ultimate objective of financial management is maximizing shareholders wealth. a. Discuss what are the different strategies that could be implemented to maximize shareholders wealth. b. Discuss the different indicators/business performance in which you could say that there is maximization of shareholders 2. Working capital is very important to manage. a. Discuss in what business condition management should adapt aggressive working capital management. What are the strategies adapted under this? What are the advantages and disadvantages of such strategies? b. Discuss in what business condition management should adapt conservative working capital management. What are the strategies adapted under this? What are the advantages and disadvantages of such strategies? 3. Determining capital structure is very important in maintaining healthy financial condition of the business. a. What are the different sources of financing for the business? For each of the sources that you mentioned, what is the advantage of having this source? What are your criteria in evaluating the best source of financing? b. Discuss the importance of having the optimum capital structure. What do you think is the optimum capital structure for the business? Why? 4. Consolidation or mergers are strategies to grow a business. Enumerate the factors to be considered in entering into consolidations/mergers. For each of the factors you have given, why is this an important consideration in consolidation/merger?
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