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

A. maximize current dividends per share

B. maximize the current value per share

C. increase cash flow and avoid financial distress

D. minimize operational costs while maximizing firm efficiency

E. maintain steady growth while increasing current profits

Solutions

Expert Solution

Correct answer is E

There are two return that the investor expects from the stock, increase in the stock price and dividend pay-out.

So the correct answer is E. maintain steady growth while increasing current profit.

jeff jeffy answered 1 year ago

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