rephrase the paragraphs each
Three (3) Financial Objectives are:
1. These are Critical targets that guide a company’s economic performance and long-term sustainability, with one key example being the goal of achieving growth in earnings. This objective measures a firm’s ability to increase its net profits over time, reflecting successful revenue generation, cost management, or operational efficiency improvements. For university students studying business, understanding earnings growth involves recognizing its importance as an indicator of financial health, which can attract investors and support reinvestment into the company. For instance, a target like 3M Corporation’s aim for 10% or higher annual earnings per share growth, as noted by David (2007), demonstrates how such goals are set to ensure steady financial progress. However, achieving this requires balancing short-term gains with strategic investments, as overemphasizing immediate profits might undermine future competitiveness, a concept emphasized by Strickland and Thompson (2003). Thus, earnings growth serves as both a measurable milestone and a strategic priority for businesses aiming to thrive in competitive markets.
2. Financial objectives are key benchmarks for business success, exemplified by McCormick & Company targeting a 20% return on equity (ROE), meaning 20 cents profit per dollar of shareholders’ equity (net income/equity × 100). This reflects efficient capital use and strong investor value, possibly through market expansion or cost optimization. For business students, this highlights McCormick’s focus on profitability, though balancing it with strategic goals like innovation is vital for long-term competitiveness (David, 2007).
3. To achieve an attractive and sustainable increases in Market Value Added (MVA) are essential for businesses aiming to enhance shareholder wealth and long-term market perception. MVA, calculated as the difference between a company’s market value (total value of its stock) and the capital invested by shareholders and creditors, reflects the value
