The primary goal of financial management is to
A)maximize current dividends per share of the existing stock.
B)minimize operational costs and maximize firm efficiency.
C)maintain steady growth in both sales and net earnings.
D)maximize the current value per share of the existing stock.
E)avoid financial distress.

Question

Quizplus · Accepted Answer

The primary goal of financial management is to maximize the current value per share of the existing stock, which involves making decisions that maximize the value of the firm over time through efficient use of resources and investments. This goal aligns with the objective of creating wealth for shareholders and maximizing stakeholder value. Other goals, such as minimizing costs and avoiding financial distress, are important but are secondary to the primary goal of maximizing shareholder value.

The Primary Goal of Financial Management Is to