financial decision

D

dimpy.handa

Dimpy Handa
an optimal combination of decisions relating to investment, financing and dividends will max the value of the firm to its shareholders. How far do you agree to the statement?
 
Investment and dividends are the two things that actually act in the opposite direction, dividends will make the money go while Investment will add properties to your firm. An optimal decision should be made seeing the market situation for example if the market is in boom then we can go for investment while in the other case we have to maintain the shareholder's confidence i.e. we have to give our attention more towards distribution of dividends.
 
According to Deardorff's Glossary of International Economics, a multinational corporation is a firm “that operates in two or more contries... [and] headquartered in only one country but has production or marketing in others.” The first constraint to maximizing shareholder's wealth already appears when deciding where to open that foreign production sight or marketing office. There is a good chance that the responsible executive may be swayed by other things than the company's shareholders: e.g. the executive may end up choosing a country that represents more prestige, a seemingly more ethical choice or even just a more exotic destination for future business travels.
 
yes ofcourse as the shareholders will be luking for the dividends at the end of the day but for the company to achieve this, it should be stronger in all the value chain activities
 
Value chain is a high-level model of how businesses receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers
 
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