When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that areexpected to increase share price.

Question

Quizplus · Accepted Answer

Maximizing shareholder wealth is a primary goal of financial management. Therefore, financial managers should only accept those actions that are expected to increase the firm's share price, as it directly reflects the value of the firm to its shareholders.

When Considering Each Financial Decision Alternative or Possible Action in Terms