The primary goal of the financial manager of a firm is to: A) maximize operating income...

The primary goal of the financial manager of a firm is to:

A) maximize operating income

B) Generate growing sales

C) Maximize the book value of the company

D) maximize the market value of the shareholders' investment in the company

E) Increase profit margins

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Expert Solution

Ans D) maximize the market value of the shareholders' investment in the company

The primary goal of the financial manager of a firm is tomaximize the market value of the shareholders' investment in the company. Maximizing shareholders value leads to more satisfaction of shareholders as shareholders are the ultimate owners of the company.

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