The primary goal of a financial manager should be to _____.
A)minimize operating costs
B)minimize interest payments
C)minimize tax payments
D)maximize operating income each year
E)maximize the value of the firm's stock

Question

The primary goal of a financial manager should be to _____. 
A)minimize operating costs
B)minimize interest payments
C)minimize tax payments
D)maximize operating income each year
E)maximize the value of the firm's stock

Quizplus · Accepted Answer

The primary goal of a financial manager should be to maximize the value of the firm's stock. This means maximizing shareholder wealth and ensuring the long-term sustainability of the company. While minimizing operating costs, interest payments, and tax payments are important, they are subordinate to the goal of maximizing shareholder value. Maximizing operating income each year may not necessarily lead to long-term value creation for shareholders.

The Primary Goal of a Financial Manager Should Be to _____