The shareholder wealth maximization goal states that management should seek to maximize the of the expected future returns to the owners of the firm.
A)Future value
B)Compound value
C)Percentage value
D)Present value

Question

Quizplus · Accepted Answer

The shareholder wealth maximization goal is about maximizing the value of future returns, but in financial management, the value of future cash flows is typically measured by their present value. Therefore, the best choice is D: Present value.

The Shareholder Wealth Maximization Goal States That Management Should Seek