Which one of the following actions best meets the goal of financial management?
A) Deciding a firm should be 100% equity financed.
B) Delaying cash payments to increase the total cash on hand.
C) Easing the accounts receivable policies to increase current sales.
D) Accepting a project that enhances the current market value of the firm's stock.
E) Issuing additional shares of stock to increase the total cash on hand.

Question

Quizplus · Accepted Answer

The primary goal of financial management is to maximize shareholder wealth, which is directly related to the market value of the firm's stock. Accepting a project that enhances the current market value of the firm's stock directly aligns with this goal, as it likely increases the firm's profitability and future growth prospects, thereby benefiting shareholders.

Which One of the Following Actions Best Meets the Goal