According to the shareholder wealth maximization goal, management should seek to maximize the of the to_______owners.
A)present value;expected pretax cash flows
B)future value;expected pretax cash flows
C)present value;expected future returns
D)future value;expected future returns

Question

Quizplus · Accepted Answer

The goal of shareholder wealth maximization aims at maximizing the present value of expected future returns to owners. This means the management should focus on generating greater profits and increasing the value of the firm over time, which in turn increases the value of shareholders' investment. Future value is not explicitly mentioned in this goal, and pretax cash flows are only a means to achieve the ultimate goal of maximizing shareholder wealth. Therefore, options A, B, and D are not accurate.

According to the Shareholder Wealth Maximization Goal, Management Should Seek