Under what assumptions if you just maximize the shareholders’ wealth, the firm value will also be automatically maximized? Briefly explain in your own words.

When it will be assumed that the company is fully financed with equity shareholders and it does not have any kind of the debtholders in the overall structure of the company then, it will be leading into maximization of equity sharesholders for maximisation the value of the company.

When the value of the company will be increasing in the market, and the market capitalisation of the company will be increasing, it will be leading into Increase in the overall value of the company.

There is a complete equity financed company and it is assumed that increasing the value of the equity shareholders will be increasing the value of the company.