Question

In: Finance

If the optimal goal of financial management is to increase the company stock price, what should...

If the optimal goal of financial management is to increase the company stock price, what should the financial manager strive to do?

Select one:

a. Undertake projects that will maximize profits for the firm

b. Undertake projects that will maintain steady earnings growth for the firm

c. Undertake projects that will create value for the firm

d. Undertake projects that have the highest Internal Rate of Return.

e. None of the above.

Solutions

Expert Solution

Option C is correct

Undertake project that will create value for the firm

Project with positive NPV create value for the


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