Question

In: Finance

Which one of the following best illustrates that the management of a firm is adhering to...

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?

A. increase in the market value per share

B. decrease in the per unit production costs

C. increase in the number of shares outstanding

D. decrease in the net working capital

E. increase in the amount of the quarterly dividend

Solutions

Expert Solution

Answer: Correct Option is A.) Increase in the market value per share.

Reason :

One of the most important goals of financial management is to maximize the wealth of shareholders. Therefore if there is increase in the market value per share Then it shows that the management of firm is adhering to the goal of financial management.


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