How do you measure shareholder wealth maximazation?

Shareholder wealth maximization is typically measured by the increase in a company's stock price and the dividends paid to shareholders. This can be assessed through metrics such as total shareholder return (TSR), which combines capital gains and dividends, and earnings per share (EPS), which reflects profitability. Additionally, the company's market capitalization can serve as an indicator of its overall value to shareholders. Overall, a focus on sustainable growth and profitability contributes to long-term shareholder wealth.