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

The optimal strategy for a financial manager is to undertake the plan that maximizes the current stock price, as this aligns with the primary goal of financial management to increase shareholder value.

A ﬁNancial Manager of a Corporation Is Considering Different Operating