Map of italy with cities on it for An increase in dividends raises shareholder wealth by increasing cash inflows received by stockholders. Retained earnings indicate that a corporation is using some of its profits to improve the company. Consequently, profits are expected to rise in the future, current stock prices rise and shareholder wealth increases. Maximizing profits can be achieved in one of two general ways. Firms can maximize profits by increasing total revenues or decreasing total costs. A firm’s total revenues will be determined by the selling price of its product and the total amount of output the firm sells. For example, a firm that sells 100 units of output at $20 per unit will collect total revenues of $2,000. Map of italy with cities on it 2016.