Management's primary goal in a publicly-owned firm interested in serving its stockholders should be to... a)...

Management's primary goal in a publicly-owned firm interested in serving its stockholders should be to...

a) Maximize shareholder value by maximizing the intrinsic value of the firm's stock.

b) Maximize the year-over-year variance of the firm's gross margin percentage.

c) Minimize the risk(s) that result in shareholders experiencing losses.

d) Maximize the firm's projected net income.

Expert Solution

The main goal of management for a publicly owned company
is to maximize shareholder value by generating as much profit as
possible.

Both a) and d) are correct.
a) Maximize shareholder value by maximizing the intrinsic value of the firm's stock.
d) Maximize the firm's projected net income.

jeff jeffy answered 3 years ago

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