Question

In: Finance

What is the primary goal of financial management? Select one: a. Increased earnings b. Maximizing cash...

What is the primary goal of financial management?

Select one:

a. Increased earnings

b. Maximizing cash flow

c. Maximizing shareholder wealth

d. Minimizing risk of the firm

Solutions

Expert Solution

c. Maximizing shareholder wealth

A primary goal of financial management is to maximize the shareholders wealth by maximizing current market price of share. They achieve this investing in bettter projects, reducing costs etc.


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