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How can shareholders wealth be maximized?
Shareholders wealth can be maximized by maximizing Return on Equity, which is equal to Net Income divided by equity. The higher the net income the more the stock price will increase which will maximize their wealth.
What is a Lorenz curve?
The Lorenz curve was developed by Max O. Lorenz. The Lorenz curve is a visual representation in economics which displays the income distribution of a nation graphically. On the y-axis, you have income distribution (either as a percentage, or in decimal form); on the x-axis, there is population distribution of total wealth. There is an upward sloping, 45 degree reference line that shows perfectly equal distribution of wealth (i.e 25% of the lowest income earners have 25% of the nation's income). From the Lorenz curve, you can calculate the Gini coefficient; the closer the coefficient is to zero, the more distributed the income of a nation is.
Can Lorenz curve above the diagonal?
No.The Lorenz curve measures inequality of distribution of income (or wealth). The diagonal represents a distribution that is perfectly equal and you cannot get more equal than that!
What is the problems of wealth maximization?
the problems of wealth maximization is the minimumization of wealth minimumization...ask me no more thats final......,
What is the importance of income distribution to us especially to our economy?
The distribution of income in a population is a measure of the concentration of income. That is, of the total population, what percentage receive immense incomes relative to what percentage receive little or no income, and the relative measures of those levels of income. In the US, terms like "upper (income) class", "middle class", and "lower class" have identified three distinct levels of income. The income levels associated with each, and the relative sizes of each class changes continuously. In general, lower class refers to too little income for planning and saving; income for a month covers not much more, if all, the expenses for the month. Middle class income might allow savings of a few months income to several years' worth. Upper class might have savings in excess of several years of income, or much more. Different political agendas see the classes as having different roles in the social structure. In one view, the upper class provides the capital for ventures and infrastructure, the middle class the skilled efforts and mercantile workforce that actually generate most of the wealth of the nation. The lower class provides relatively less wealth creation, but often much of the labor and, prior to modern agribusiness, much of the food of the nation. Societies with very large lower classes and little mobility (the access people have to move to a higher income class) tend to be less stable, more prone to civil unrest. In the US, military service and public education, plus a reliance on character and aptitude over social status in hiring practices, has been markedly accessible, in the past. Another social theory contends that the existence of the upper class is the reason for poverty, and removal of wealth from the upper and middle classes will enrich the lower class to place the entire society in the middle class. Measuring and citing income distribution can be used in serious study of social dynamics, in evaluating and planning economic changes, trends, and impacts of changes, and in political rhetoric. Sharply divided income distributions favor the few wealthy and powerful individuals, as they have few competitors and a large impact of the lower classes. Broadly distributed incomes, particularly large middle classes and modest lower class people, tend to generate more wealth for all, including the lower classes.
Which is distributed more unequally in US income or wealth?
Wealth is distributed more unequally in the US compared to income. The top 1% of households in the US hold a disproportionate amount of the nation's wealth, with a significant wealth gap between the richest and poorest individuals. This inequality in wealth distribution has long-term implications for economic stability and social mobility.
What is the Gini coefficient?
The Gini coefficient is a measure of income inequality within a population, with a value of 0 indicating perfect equality and 1 indicating perfect inequality. It is commonly used by economists and policymakers to understand the distribution of income or wealth within a country. A higher Gini coefficient suggests a more unequal distribution of income.
How can we maximize the shareholder wealth in banking sector?
There are several ways to maximize the shareholder wealth in banking sector. This would entail encouraging more clients to transact with the bank which will generate more income for the banks and thereby maximizing the wealth of shareholders.
How can shareholders wealth be maximized?
Shareholders wealth can be maximized by maximizing Return on Equity, which is equal to Net Income divided by equity. The higher the net income the more the stock price will increase which will maximize their wealth.
How did the Celts measure their wealth?
The Celts measured their wealth in terms of the number of cattle they owned. Cattle were an important symbol of wealth and status in Celtic society, and owning more cattle meant being considered richer and more powerful. Land ownership and valuable items such as jewelry and weapons also contributed to a person's wealth in Celtic culture.
The measure of how difficult it is for electrons to flow through a circuit is called what?
The measure of how difficult it is for electrons to flow through a circuit is called resistance.Another AnswerResistance is not a measure of 'how difficult' it is for electrons to flow through a circuit. It is more accurate to describe it as a measure of whether a material can supportcurrent flow.For example, it's incorrect to say that an insulator 'blocks' current flow. It's more accurate to say that it has an insufficient amount of charge carriers to support an electric current.
Why was life on the front more difficult for southerners?
Life on the home front was more difficult for Southerners because when all the cotton in the South was burned because of the Civil War, the South lost a major part of it's income.
Are there more rich people than poor?
In general, there are more people classified as poor or lower income compared to those classified as rich or wealthy. The distribution of wealth and income is typically uneven, with a smaller percentage of the population holding a large majority of the wealth.
What are the basic principles of taxation in Islam?
Islam has a completely different perspective on the economy and tax as the Islamic basis is different to that of capitalism. Fundamentally taxation in Islam and under the khilafah puts the emphasis of taxation on wealth rather than income. The Islamic taxation system does not tax income, but taxes wealth.
What is the ability to pay principle of taxation?
Benefit taxation can relate only to the financing of public services and not to the redistributive function of the tax transfer process.Under this approach, the tax problem is viewed by itself, independent of the expenditure determination.Horizontal EquityTaxationaccording to ability to pay calls for people with equal capacity to pay the sameVertical EquityFor people with greater ability to pay, they pay more. Person A , whose income is higher , should pay more than B. Implementation of either rule requires a quantitative measure of ability to pay . Ideally this measure is reflected in income, expenditure and wealth.
Why was life on the home front more difficult for southerners?
Life on the home front was more difficult for Southerners because when all the cotton in the South was burned because of the Civil War, the South lost a major part of it's income.
Why is it said that mass is a measure of inertia?
This is related to Newton's Second Law. The more mass an object has, the more difficult it is to accelerate it; in other words, the more inertia it has.
