Which of the following is the BEST description of the goal of the financial manager in a corporation where shares are publicly traded?
A) Maximize sales.
B) Maximize profits.
C) Avoid financial distress.
D) Maintain steady earnings growth.
E) Maximize the current value per share of the existing stock.

Question

Quizplus · Accepted Answer

The primary goal of the financial manager in a publicly traded company is to maximize shareholder wealth, which is achieved by maximizing the current value per share of the existing stock. This objective aligns the interests of the financial manager with those of the shareholders.

Which of the Following Is the BEST Description of the Goal