Which one of the following best states the primary goal of financial management?

maximize current dividends per share

maximize the current value per share

increase cash flow and avoid financial distress

minimize operational costs while maximizing firm efficiency

maintain steady growth while increasing current profits

Solutions

Expert Solution

The primary goal of Financial Management is to maximize the shareholders wealth and shareholders wealth can be maximized by maximizing the current value per share. When the current value per share will be going up, it will mean that the overall market capitalisation of the company will go up and it will also mean that overall shareholders wealth will go up.

Rest of the goals are not the primary goals of financial management

Correct answer will be option (B) maximizing the current value per share.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Which one of the following best matches the primary goal of financial management?

Which one of the following best matches the primary goal of financial management? A. Increasing the dollar amount of each sale B. Increasing traffic flow within the firm's stores C. Transforming fixed costs into variable costs D. Increasing the firm's liquidity E. Increasing the market value of firm

Which one of the following best matches the primary goal of financial management?

Which one of the following best matches the primary goal of financial management?A.Increasing the dollar amount of each saleB.Increasing traffic flow within the firm's storesC.Transforming fixed costs into variable costsD.Increasing the firm's liquidityE.Increasing the market value of firm

Which one of the following best states the primary goal of stockholders?

Which one of the following best states the primary goal of stockholders?A. maximize current dividends per shareB. maximize the current value per shareC. increase cash flow and avoid financial distressD. minimize operational costs while maximizing firm efficiencyE. maintain steady growth while increasing current profits

Which of the following best describes the goal of financial management? Select one: a. Maximisation of...

Which of the following best describes the goal of financial management? Select one: a. Maximisation of shareholder wealth b. Maximisation of profit c. Minimisation of risk d. Preparation of financial reports

Regarding the goal of financial management, which of the following is the best answer?

Regarding the goal of financial management, which of the following is the best answer? maximizing earnings per share. maximizing net income. maximizing market share. maximizing shareholders' wealth.

Which one of the following actions by a financial manager best meets the goal of financial...

Which one of the following actions by a financial manager best meets the goal of financial management? a) deciding a firm should be 100% equity financed b)delaying cash payments to increase the total csh on hand c) Issuing additional shares of stocks to increase the total cash on hand d)accepting a project that enhances the current market value of the firms stoc k e)none of the above

The primary goal of financial management is creating value by _______

The primary goal of financial management is creating value by _______ A. making investments that are worth more than they cost B. issuing bonds that receive investment-grade ratings C. making investments that pay off sooner rather than later D. taking as little risk as possible

What is the primary goal of management? What are the primary tasks of a Chief Financial...

What is the primary goal of management? What are the primary tasks of a Chief Financial Officer (CFO) and others in finance function of an organization?

What is the primary goal of financial management for a sole proprietorship?

What is the primary goal of financial management for a sole proprietorship? Maximize the market value of the equity Maximize net income given the current resources of the firm Minimize the tax impact on the proprietor Decrease long-term debt to reduce the risk to the owner Minimize the reliance on fixed costs

Which of the following is not an appropriate primary goal for a corporation's financial manager?

Which of the following is not an appropriate primary goal for a corporation's financial manager?A. 0 Maximize shareholder wealthB. 0 Maximize stock priceC. 0 Maximize the number of shares of stockD. 0 Maximize the value of an all-equity firm

Subjects