The primary goal of a financial manager should be to __________. a. minimize operating costs b....

The primary goal of a financial manager should be to __________.

a.	minimize operating costs
b.	minimize interest payments
c.	minimize tax payments
d.	maximize operating income each year
e.	maximize the value of the firm's stock

Expert Solution

Answer: Option [e] maximize the value of the firm's stock

Explanation:

Maximizing shareholders' wealth is the most appropriate goal of a financial manger.

As shareholders' wealth is the market value of equity, it follows that maximizing share prices would maximize shareholders' wealth.

All the other options together constitute measures to increase shareholders' wealth and the price of the shares.

jeff jeffy answered 2 years ago

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