Finance theory assumes that the objective of a Plc is to maximize the wealth of its shareholders.
Finance theory assumes that the objective of a Plc is to maximize the wealth of its shareholders. Critically discuss whether this should be the main objective of Plc’s today, you must include in your discussion both theoretical and practical research, you may also wish to consider the legal position.
A good source of basic information for the essay is chapter 1 of Arnold G. ‘Corporate Financial Management’. This however is just a start you cannot expect to receive a good mark if you only use textbooks. You also need to find empirical evidence from journal articles and find some practical examples relating to company objectives.
APA referencing style
You will have to decide what you think the objective of a Plc should be and then use your gathered evidence to support your decision. There is no right answer, but you do need to be able to build a case using your research, if you include unsupported claims these will not gain marks.
This assignment assesses the following learning outcomes:
On completion of this module students will:
Critically evaluate various finance theories
Present information, analysis and recommendations in a concise comprehensible way.