The primary goal of a publicly owned firm interested in serving its stockholders should be to _____.
A) minimize the debt used by a firm
B) maximize expected EPS
C) minimize the chances of losses
D) maximize the stock price per share
E) maximize expected net income

Question

Quizplus · Accepted Answer

The primary goal of a publicly owned firm interested in serving its stockholders should be to maximize the stock price per share. This is because a higher stock price results in higher returns for the stockholders, which is the ultimate goal of owning stocks. Maximizing the EPS, net income, or minimizing debt or losses may be desirable, but they should be secondary goals to maximizing the stock price.

The Primary Goal of a Publicly Owned Firm Interested in Serving