the ultimate long term goal of the firm should be to a. maximize cash flow b....

the ultimate long term goal of the firm should be to

a. maximize cash flow

b. minimize catastrophic occurrences

c. maximize owner value

d. maximize market share

e. none of the above

Solutions

Expert Solution

The ultimate long term goal of the firm should be to

c. maximize owner value

Maximizing shareholder value is the ultimate goal of any firm.

This can be achieved by maximizingn cash flow and maximizing market share.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

the long-run goal of financial management should be to: a) maximize the firms shareholder wealth b)...

the long-run goal of financial management should be to: a) maximize the firms shareholder wealth b) maximize the firms outstanding share of stock c) minimize the firms reliance upon debt d) maximize the firms sales

In a corporation, what should be management's main goal? A). Maximize the stock price B). Maximize...

In a corporation, what should be management's main goal? A). Maximize the stock price B). Maximize sales C). Minimize costs D).Maximize the number of products Maximize their paychecks

The ultimate goal of all financial decisions is “to maximize the value of shareholders”. With your...

The ultimate goal of all financial decisions is “to maximize the value of shareholders”. With your knowledge in Strategic Finance Issues, how true is this statement and how can financial manager practically achieve the “shareholder value maximization goal” through the decisions they take? You may use the balance sheet model to explain.

Which of the following statements concerning cash flow planning is correct? The goal is to maximize...

Which of the following statements concerning cash flow planning is correct? The goal is to maximize net cash flow. The goal should be to invest for the future, rather than maintaining current lifestyle. The goal should be to identify strengths and weaknesses in the client’s cash flows. The goal is to optimize net cash flow. Banks will typically grant home equity loans or lines of credit up to what loan-to-value percentage? 20 percent 40 percent 60 percent 80 percent PITI...

Which of the following statements concerning cash flow planning is correct? The goal is to maximize...

Which of the following statements concerning cash flow planning is correct? The goal is to maximize net cash flow. The goal should be to invest for the future, rather than maintaining current lifestyle. The goal should be to identify strengths and weaknesses in the client’s cash flows. The goal is to optimize net cash flow. 2. All the following are advantages of budgeting, EXCEPT: It helps reveal inefficient uses of resources. It fosters creativity and judicious risk-taking. It provides a...

We learned that the ultimate goal of financial management is to maximize shareholders' wealth. Could this...

We learned that the ultimate goal of financial management is to maximize shareholders' wealth. Could this goal conflict with other goals, such as customer and employee safety, the environment and the general good of society? Should the firms take into consideration the well-being of the society in their effort to maximize shareholders' wealth? Try to think of some specific scenarios to illustrate your answer.

Suppose you are a policy-maker your ultimate goal is to maximize the social welfare.

Suppose you are a policy-maker your ultimate goal is to maximize the social welfare. There is a hardware firm producing a product, say laptop. This firm produces one kind of laptop with respect to its technical specificătions but with different colours. Suppose the firm sets the same price,p. for a laptop regardless of its colour. • Does this firm overproduce or underproduce? Explain. • What kind of strategy would make the firm produce in a way to maximize the social welfare?

Should stockholder wealth maximization be thought of a long-term or a short-term goal? Which approach is...

Should stockholder wealth maximization be thought of a long-term or a short-term goal? Which approach is better? Explain and think of some specific corporate actions that have these tendencies

The goal of the firm is? Maximize Retained Earnings Minimize Risk Maximize Shareholders wealth Maximize Net...

The goal of the firm is? Maximize Retained Earnings Minimize Risk Maximize Shareholders wealth Maximize Net income

The goal of the firm is to maximize firm value (maximize the stock price). How can the managers of the firm make this happen?

The goal of the firm is to maximize firm value (maximize the stock price). How can the managers of the firm make this happen? How might agency costs get in the way? Explain

Subjects