Finance Question

Which one of the following is a criticism of equating the goals of maximizing the ROE of a firm and maximizing the firm's shareholder wealth?

a) ROE is based on after-tax earnings, not cash flows.
b) ROE does not consider risk.
c) ROE ignores the size of the initial investment as well as future cash flows.
d) All of these are criticisms of ROE as a goal.

lillybits23
Asked Sep 04, 2012
This question doesn't make sense. The return on equity for a business is a entirely different thing than shareholder's wealth which could include assets of many other types from other sources. How can you "equate" them? They're "apples and oranges."
Rob
Answered Sep 04, 2012
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Today Walter International is one of Asia’s leading stockbroking firms, with our core focus strictly on our clients. Being a full service brokerage in one of the largest financial hubs in the world, we have had the privilege of working with some of the best names in research and analytics. These alliances have enabled us to build an array of unique and extremely lucrative portfolios for each one of our clients.

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walterinter1
Answered Jul 26, 2019
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Although each client has a unique financial situation, the common goal for our Portfolio managers is to create wealth, safeguard wealth, and manage tax obligations related to their investments. Our services include advisory management, discretional management and institutional portfolio management in addition to management services for professional intermediaries.

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nainternational
Answered Jul 30, 2019

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