Managerial Actions to maximoize shareholder wealth

Stockholders' wealth can be maximized by maximizing the price of a firm's stock. To maximize the price of a firm's stock, the management must consider the following things:

• Projected earning per share
• Timing of the earning stream
• Riskiness of the projected earning
  
• Use of debt
• Dividend policy

Thus, stock price is also effaced by the dividend policy adopted by a firm. A firm should follow optimal dividend policy that
can maximize the market price of stocks.