If you were in charge of a private firm and it doesn’t have a share price, what should your goal as a financial manager be?

If you were in charge of a private firm and it doesn’t have a share price, what should your goal as a financial manager be?

Expert Solution

If we are the In-charge of a private firm and have to value the share price, so as a financial manager our goal is to access the worth of the business from the balance sheet of the company to get the share price. The worth of the business can be attained by substracting the liabilities of the business out of total worth of the assets of the business.

The valuation of the share price of the company which is not listed at the stock exchange and do not have share price in the market can be calculated by getting “Net Worth per share”.

The valuation of the Net Worth is the proper method of accessing the share price because it is the actual valuation of the business of the firm.

jeff jeffy answered 2 years ago

What should be the goal of the financial manager of a corporation?

7. What should be the goal of the financial manager of a corporation? Does it mean that financial managers have to do anything and everything to achieve that goal? Explain your answer. 8. Briefly explain the assumptions associated with the constant dividend growth formula. What are the components of the required rate of return on a share of stock? Briefly explain each

If you were the appropriate financial manager of any firm what would be your observations and...

If you were the appropriate financial manager of any firm what would be your observations and recommendations be? use any example for any firm URGENT: NEED ANSWER ASAP PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT USE ORIGINAL CONTENT NOT USED BEFORE ON CHEGG PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES ORIGINAL SOURCE NEVER USED BEFORE!!!

Which of the following should be the goal of the financial manager?

Which of the following should be the goal of the financial manager? to maximize market share to maximize current stock value to maximize profit to maximize earnings

1. What should be the goal of the financial manager of a corporation? Why? 2. If...

1. What should be the goal of the financial manager of a corporation? Why? 2. If the corporate form of business organization has so many advantages over the corporate form, why is it so common for small businesses to initially be formed as sole proprietorships? 3. One thing lender sometimes require when lending money to a small corporation is an assignment of the common stock as collateral on the loan. Then, if the business fails to repay its loan, the...

The primary goal of the financial manager of a firm is to: A) maximize operating income...

The primary goal of the financial manager of a firm is to: A) maximize operating income B) Generate growing sales C) Maximize the book value of the company D) maximize the market value of the shareholders' investment in the company E) Increase profit margins

If the optimal goal of financial management is to increase the company stock price, what should...

If the optimal goal of financial management is to increase the company stock price, what should the financial manager strive to do? Select one: a. Undertake projects that will maximize profits for the firm b. Undertake projects that will maintain steady earnings growth for the firm c. Undertake projects that will create value for the firm d. Undertake projects that have the highest Internal Rate of Return. e. None of the above.

The primary goal of a financial manager should be to __________. a. minimize operating costs b....

The primary goal of a financial manager should be to __________. a. minimize operating costs b. minimize interest payments c. minimize tax payments d. maximize operating income each year e. maximize the value of the firm's stock

We know that the goal of corporate financial management is the maximisation of the share price...

We know that the goal of corporate financial management is the maximisation of the share price (or the market value of the firm). One question that might be asked is why don't financial managers just maximise profits instead? Which of the following points explain why it would be problematic to set profit maximisation as the goal of financial management? Select one: a. "Profit" is not a well-defined concept. It can mean one thing to a business person and something different...

To price-discriminate, a firm should charge a higher price to customers with _______ demand as compared...

To price-discriminate, a firm should charge a higher price to customers with _______ demand as compared to other consumers of this good. the same elasticity of more elastic For a fir more inelastic din charging different prices to different types of consumers, it needs to also _______ as a failure to do so would result in a loss of profits.

What is the main goal of a financial manager? Can you think of a company whose...

What is the main goal of a financial manager? Can you think of a company whose manager does a good job of this goal?

Question