The primary goal of financial management is to maximise the:
A)current net income
B)net working capital
C)number of shares outstanding
D)market value of the existing stock
E)capital structure

Question

Quizplus · Accepted Answer

The primary goal of financial management is to maximize the market value of the existing stock. This means that the company should aim to increase the value of its shares in the market, which can be achieved through various means such as increasing profitability, adopting efficient business practices, and taking advantage of market opportunities. Maximizing market value ultimately benefits the shareholders, as it increases their wealth in the form of higher stock prices and potentially higher dividends.

The Primary Goal of Financial Management Is to Maximise The