The primary goal of a financial manager of a corporation is:

maximizing shareholder value

growing earnings

increasing market share

increasing dividends

Solutions

Expert Solution

The Correct Answer is maximizing shareholder value.

Shareholder wealth maximization occurs when value of the shares held by the shareholders increases. This can happen only when the company is able to generate adequate profits and adding value to its business. Therefore when value addition is made to the business then the share prices also tend to increase. The existing shareholders thus enjoy the additional value of their investments. The financial manager has to assures that shareholders are being rewarded with adequate returns in the form of increased share prices. A business that focuses on Shareholder wealth maximization can thrive in a competitive environment.

jeff jeffy answered 1 year ago

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