The decisions made by financial managers should all be ones that increase the
A)size of the firm.
B)growth rate of the firm.
C)market value of the existing owners' equity.
D)marketability of the managers.
E)financial distress of the firm.

Question

Quizplus · Accepted Answer

Financial managers should make decisions that increase the market value of the existing owners' equity, as this is ultimately the goal of the firm. While increasing the size and growth rate of the firm can be important, they do not necessarily lead to increased value for shareholders. Marketability of managers and financial distress are not desirable outcomes and therefore not relevant to the decision-making process.

The Decisions Made by Financial Managers Should All Be Ones