a firm's goal is to maximize its earnings per share, this is the best way to maximize the price of the common stock and thus shareholders' wealth.

Name: a firm's goal is to maximize its earnings per share, this is the best way to maximize the price of the common stock and thus shareholders' wealth.
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Question

Quizplus · Accepted Answer

Maximizing earnings per share does not necessarily lead to maximizing stock price or shareholder wealth, as it may ignore other factors like risk, investment opportunities, and long-term growth.

A Firm's Goal Is to Maximize Its Earnings Per Share