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In: Finance

Regarding the goal of financial management, which of the following is the best answer?


Regarding the goal of financial management, which of the following is the best answer? 

maximizing earnings per share. 

maximizing net income. 

maximizing market share. 

maximizing shareholders' wealth.

Solutions

Expert Solution

The goal of financial managers company is to maximize wealth of the shareholders in the long run. Shareholder wealth can be increased by increasing the market price of the shares in the company or by increasing the intrinsic value of the shares of the company.

Hence, the answer is option c.

jeff jeffy answered 2 years ago
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