when making financial decisions (such as decisions relating to what investments to make and how to finance them), managers should choose the decision that maximizes owners' wealth. The book stresses that managers should target owners' wealth maximization rather than profit maximization.

Please comment on one or more of the following:

• Why is the textbook not recommending targeting maximizing of profits?
• What are the supposed benefits of targeting owners' wealth?
• How can managers target owners' wealth when different owners (shareholders) have different amounts of wealth and may follow different investment strategies?
• What would your recommend - maximizing profits or maximizing owners' wealth?