Which of the following is the BEST description of the goal of the ﬁnancial manager in a corporation where shares are publicly traded?
A) Maximize sales.
B) Maximize proﬁts.
C) Avoid ﬁnancial distress.
D) Maintain steady earnings growth.
E) Maximize the current value per share of the existing stock.

Question

Quizplus · Accepted Answer

The goal of the financial manager in a publicly traded corporation is to maximize the current value per share of the existing stock, which requires increasing the company's profitability, managing risk, and making investment decisions that provide a positive return for shareholders. While maximizing sales and profits are important, these goals must be balanced with long-term sustainability and considerations for the company's financial health. Avoiding financial distress and maintaining steady earnings growth are also important, but the overarching objective is to create value for shareholders.

Which of the Following Is the BEST Description of the Goal