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The primary objective of financial management is to maximise shareholders wealth. Explain.

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The primary aim of financial management is to maximise shareholder’s wealth, which is referred to as the wealth maximisation concept . It means maximisation of the market value of equity shares.

The shareholders are the owners of the company. So it is the responsibility of the company to pay reasonable dividend and also to maximize the value of its shares. All financial decisions aim at ensuring that each decision is efficient to increase the market price of shares.

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