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

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 2 years ago

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Question

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

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Expert Solution

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