The goal of profit maximization would result in priority for
A) cash flows available to stockholders.
B) risk of the investment.
C) earnings per share.
D) timing of the returns.

Question

Quizplus · Accepted Answer

Profit maximization focuses on maximizing earnings per share, which is a measure of how much profit is generated for each outstanding share of common stock. This measure is important to stockholders as it can impact stock price and dividend payouts. Prioritizing cash flows, timing of returns, and risk may not necessarily lead to maximizing profits.

The Goal of Profit Maximization Would Result in Priority for