Question

In: Finance

The Chief Financial Officer of a company has many responsibilities. Which of the following statements best...

The Chief Financial Officer of a company has many responsibilities. Which of the following statements best represents the primary goal of Financial Management?

A. The maximization of company's earnings per accounting period.

B. Increasing the price/earnings multiple of the company's common stock.

C. The maximization of sales volume over a 5 year period.

D.The maximization of owner (shareholder) wealth.

Solutions

Expert Solution

Correct answer is option (D).The maximization of owner (shareholder) wealth.

Explanation;

As we know that main motive of the financial management is to uplift the wealth of the owners. In other words we can say that with the help of meeting various short-term financial goals of the company, main primary goal of Financial Management is to maximization of owner (shareholder) wealth.

jeff jeffy answered 2 years ago
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