A financial manager of a corporation is considering different operating strategies for the coming year. From a financial management standpoint, which of the following would be her optimal strategy?
A) Undertake the plan that would reduce the overall riskiness of the firm.
B) Undertake the plan that would maximize the current stock price.
C) Undertake the plan that would result in the largest profits for the year.
D) Undertake the plan that would maximize her personal wealth.
E) Undertake the plan that would lead to the most stable stock price for the year.

Question

Quizplus · Accepted Answer

Maximizing the current stock price is often considered the primary goal of a financial manager because it reflects the market's assessment of the firm's future cash flows and growth prospects, aligning with shareholders' interests.

A Financial Manager of a Corporation Is Considering Different Operating