logging in or signing up value maximization premrohit222 Download Post to : URL : Related Presentations : Let's Connect Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Copy embed code: Embed: Flash iPad Dynamic Copy Does not support media & animations Automatically changes to Flash or non-Flash embed WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 352 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: August 29, 2012 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript GROUP ASSIGNMENT OF MANAGERIAL ECONOMICS: GROUP ASSIGNMENT OF MANAGERIAL ECONOMICS PRESENTED BY: PREM KUMAR MAHTO RAJNISH RANVEER RASHMI ASHUTOSHPowerPoint Presentation: Q-Give reasons why authors who receive a fixed percentage of the books sales revenue as royalties would never fix the same price, if they could, as their publishers? Question 1PowerPoint Presentation: This is a contingent contract. The standard royalty is 15%. The author don’t trust to the publisher to report profit or costs accurately. Fixed fees are almost never used . ROYALTYPowerPoint Presentation: Even without falsifying its accounts, the publisher can report very low profit levels 2 . Authors put more trust in the revenue reported by the publisher 3. The publisher is not interested in maximizing joint profit. It wants to maximize its profit net of royalties 4 . An author who receives a royalty that is a percentage of revenuesPowerPoint Presentation: Q2-Value maximization has become the major objective of a modern firm. Comment ? Question 2VALUE MAXIMIZATION: VALUE MAXIMIZATION Increases in owners' wealth achieved by maximizing of the value of a firm's common stock. APPROCH: APPROCH TRADITIONAL MODERNPROFIT MAXIMIZATION: PROFIT MAXIMIZATION The traditional approach of management was all about profit maximization . P rofit maximization always concern with the operational plans It used for short run . It ignores social responsibility of business Two ways to maximize the profit (1)by taking risk (2) by innovationPowerPoint Presentation: Wealth maximization simply means maximization of shareholder’s wealth. under wealth maximization, more importance is given to cash flows rather than profitability. wealth maximization always concern with top managements plans . maximization of wealth approach believes that money has time value . Wealth = Present Value of cash inflows – Cost. modern and improved approach of wealth maximization, a new initiative called “ Economic Value Added (EVA) ” WEALTH MAXIMIZATIONFUNCTION OF WEALTH MAXIMIZATION: FUNCTION OF WEALTH MAXIMIZATION It measures the benefit in terms of cash flow and avoids the ambiguity associated with the accounting profits. It consider both quality and quantity dimensions of benefits.PowerPoint Presentation: Q-What do you think should be the important variables considered while estimating the demand for: [a] cement, [b] sugar [c] petrol and [d] toys6 Variable effecting the demand: 6 Variable effecting the demand P= Price of the good or service M = consumers’ income . Pr= price of related goods or services T = taste patterns of consumers Pe = expected price of the goods in some future period, N = number of consumers in the market .PowerPoint Presentation: Price of the good or service consumers’ income . price of related goods or services taste patterns of consumers expected price of the goods in some future period, number of consumers in the market CementPowerPoint Presentation: TOYS Price of the good or service consumers’ income . price of related goods or services taste patterns of consumers Technology and advertisement Number of consumers in the marketPowerPoint Presentation: Price of the good or service consumers’ income . price of related goods or services taste patterns of consumers expected price of the goods in some future period, number of consumers in the market SugarPowerPoint Presentation: Price of the goods or service consumers’ income . price of related goods or services taste patterns of consumers expected price of the goods in some future period, number of consumers in the market Petrol You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.