Decisions made by financial managers should primarily focus on increasing the:
A) size of the firm.
B) growth rate of the firm.
C) gross profit per unit produced.
D) market value per share of outstanding stock.
E) total sales.

Question

Quizplus · Accepted Answer

Financial managers should primarily focus on increasing the market value per share of outstanding stock, as this reflects the overall financial health and success of the company. While increasing the size or growth rate of the firm can be important, it is ultimately the market value per share that determines the value of the company to investors. Gross profit per unit produced and total sales are important factors but are not as directly related to the value of the company as market value per share.

Decisions Made by Financial Managers Should Primarily Focus on Increasing