Corporate Finance Assessment 2022

Running head: CORPORATE FINANCE
Corporate Finance
Name of the Student:
Name of the University:
Author’s Note:

CORPORATE FINANCE1
Table of Contents
Part A...............................................................................................................................................2
Overview..........................................................................................................................................2
Analysis of Company Objectives....................................................................................................2
Wealth Maximisation...................................................................................................................2
Profit Maximisation.....................................................................................................................4
Environmental Issues...................................................................................................................5
Ethical Suppliers..........................................................................................................................5
Employees....................................................................................................................................6
Gender Equality...........................................................................................................................6
Social Responsibility...................................................................................................................7
Profit vs. Wealth Maximisation.......................................................................................................7
Part B...............................................................................................................................................7
References......................................................................................................................................10

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Part A
Overview
The financial analysis of the Woolworths and Wesfarmers Company was done thereby
including the various aspects of shareholder’s wealth maximisation approach and profit
maximisation approach that is followed by the company (Annual Report, 2019). In the due
course of operations of the company the concerns and steps followed by these company in
concern to environmental issues was also introspected. It is essential that companies do have a
support from the suppliers the company in terms of delivery of goods and services. Programmes
and Initiatives taken by the company for training the employees and similar initiatives taken by
company in recognition of their efforts were also analysed via the sustainability report presented
by these companies. Diversity and Equal Opportunity is an important factor and companies
indeed need to take actions and beliefs in response to the same. Social Responsibilities taken by
these companies in the field of Human Rights Assessment, Public Policy and Customer Healthy
and Safety were some of the crucial social activities outlined. It is well important that the
activities and actions undertaken by the company in the field of social activities which was also
analyzed (Ioannou & Serafeim, 2017).
Analysis of Company Objectives
Wealth Maximisation
Wealth Maximisation is an important concept that needs to be well considered for the
purpose of analysis of the firm. The companies analysed Woolworths and Wesfarmers have

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taken several steps in order to create wealth for the shareholders of the company and the same
can be well observed with the help of diversified business operations and increased profitability
in the financial report presented by the company. Wealth Maximisation is an important concept
for the Equity Shareholders of the company in return for the desired risk taken by the company
in the due course of investment period. The wealth created by the Wesfarmers Company in the
year 2018 was around $69.9 billion and the same was created by the company in the form of
payment to suppliers, employees, shareholders, government and lenders that are directly
associated with the company.