Value maximization and financial decisions 1. The markets for financial assets provide the information needed to value the alternatives 2. The financial decision can rationally be made purely on the basis of value maximization,regardless of the stranger's risk preferences or expectations about the future. Ex.The management should choose investment to maximize current shareholders'wealth. THE COURSE OF FINANCE 2017 SPRING SJTUValue maximization and financial decisions 1. The markets for financial assets provide the information needed to value the alternatives 2. The financial decision can rationally be made purely on the basis of value maximization, regardless of the stranger’s risk preferences or expectations about the future. Ex. The management should choose investment to maximize current shareholders’ wealth. THE COURSE OF FINANCE 2017 SPRING SJTU 9