Per the shareholder wealth maximization goal, management should seek to maximize the ____ of the ____ to owners.
A) present value; expected pretax cash flows
B) future value; expected pretax cash flows
C) present value; expected future returns
D) future value; expected future returns

Question

Quizplus · Accepted Answer

The shareholder wealth maximization goal requires management to maximize the present value of expected future returns to owners. This means that the goal is not solely focused on maximizing future value or pretax cash flows, but also takes into account the time value of money by prioritizing the present value of expected future returns. Therefore, option C is the most accurate and complete answer.

Per the Shareholder Wealth Maximization Goal, Management Should Seek to Maximize