The goal of profit maximization is to assume that the financial management behavior will develop in the direction of enterprise profit maximization under the condition that the expected return on investment is determined.
2. Maximize shareholder wealth
In listed companies, the wealth of shareholders is determined by the number of shares they own and the stock market price. When the number of stocks is fixed, the stock price reaches the highest and the wealth of shareholders reaches the maximum.
3, enterprise value maximization goal
Enterprise value is the market value of the enterprise and the present value of the estimated future cash flow that the enterprise can create. The financial management goal of maximizing enterprise value reflects the potential or expected profitability and growth ability of the enterprise.
4. Maximize the interests of shareholders.
The basic idea of maximizing the interests of stakeholders is to ensure the long-term stable development of enterprises, emphasizing the interest satisfaction of various interest groups headed by shareholders in the value-added of enterprises.
5. Maximize earnings per share
The financial goal of an enterprise is summarized by the return on capital per share, which reflects the input-output relationship between the earned profits and the invested capital, thus avoiding the shortcomings of the profit maximization goal. Since the 1960s, with the gradual improvement of the capital market, joint-stock enterprises have developed rapidly, and the maximization of capital gains per share has become the financial goal of western enterprises.