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 1 year ago

Next > < Previous

Related Solutions

Which one of the following best states the primary goal of financial management?

Which one of the following best states the primary goal of financial management? maximize current dividends per share maximize the current value per share increase cash flow and avoid financial distress minimize operational costs while maximizing firm efficiency maintain steady growth while increasing current profits

Which one of the following best matches the primary goal of financial management?

Which one of the following best matches the primary goal of financial management? A. Increasing the dollar amount of each sale B. Increasing traffic flow within the firm's stores C. Transforming fixed costs into variable costs D. Increasing the firm's liquidity E. Increasing the market value of firm

Which one of the following best matches the primary goal of financial management?

Which one of the following best matches the primary goal of financial management?A.Increasing the dollar amount of each saleB.Increasing traffic flow within the firm's storesC.Transforming fixed costs into variable costsD.Increasing the firm's liquidityE.Increasing the market value of firm

Which of the following best describes the goal of financial management? Select one: a. Maximisation of...

Which of the following best describes the goal of financial management? Select one: a. Maximisation of shareholder wealth b. Maximisation of profit c. Minimisation of risk d. Preparation of financial reports

Which one of the following actions by a financial manager best meets the goal of financial...

Which one of the following actions by a financial manager best meets the goal of financial management? a) deciding a firm should be 100% equity financed b)delaying cash payments to increase the total csh on hand c) Issuing additional shares of stocks to increase the total cash on hand d)accepting a project that enhances the current market value of the firms stoc k e)none of the above

Which of the following statements best describes corporate goals? a. The proper goal of the financial...

Which of the following statements best describes corporate goals? a. The proper goal of the financial manager should be to attempt to maximize the firm’s expected cash flows, because this will add the most to the wealth of the individual shareholders. b. The riskiness inherent in a firm’s earnings per share (EPS) depends on the characteristics of the projects the firm selects, and thus on the firm’s assets. However, EPS is not affected by the manner in which those assets...

describe the goal of financial management

The overriding goal of financial management is to

The overriding goal of financial management is to Maximize shareholders' wealth Maximize profit Maximize sales Maximize operational efficiency

Which one of the following best states the primary goal of stockholders?

Which one of the following best states the primary goal of stockholders?A. maximize current dividends per shareB. maximize the current value per shareC. increase cash flow and avoid financial distressD. minimize operational costs while maximizing firm efficiencyE. maintain steady growth while increasing current profits

Regarding the differences between financial accounting and management accounting, which of the following statements is false?...

Regarding the differences between financial accounting and management accounting, which of the following statements is false? Select one: a. management accounting is less constrained than financial accounting b. the distinction between the two areas, to some extent, reflects differences in access to financial information c. there is no overlap between management accounting and financial accounting d. managers have much more control over the form and content of their reports

Subjects