Wealth maximization Implications

Wealth maximization Implications:

1. Wealth maximization concept is universally accepted, because it takes care of

interest of financial institution, owners, employees and society at large.

2. Wealth maximization guides the management in framing the consistent strong dividend

policy to reach maximum returns to the equity holders.

3. Wealth maximization objective not only serves the interest of the shareholder’s by

increasing the value of their holdings but also ensures the security to the lenders.