The objective of maximizing shareholder wealth, as measured by the market value of the firm's stock
A)does not consider the timing of the benefits received
B)provides a way to consider the risk of the returns being offered
C)benefits only certain stockholders
D)neither considers the timing of the benefits received nor benefits only certain stockholders

Question

Quizplus · Accepted Answer

Maximizing shareholder wealth considers both the timing and risk of returns, as it aims to increase the market value of the firm's stock, which reflects future cash flows and associated risks.

The Objective of Maximizing Shareholder Wealth, as Measured by the Market