Financial managers should strive to maximize the current value per share of the existing stock because:
A) doing so guarantees the company will grow in size at the maximum possible rate.
B) doing so increases the salaries of all the employees.
C) the current stockholders are the owners of the corporation.
D) doing so means the firm is growing in size faster than its competitors.
E) the managers often receive shares of stock as part of their compensation.

Question

Quizplus · Accepted Answer

The current stockholders are the owners of the corporation, so maximizing the current value per share will benefit them the most. This is one of the primary goals of financial management. Options A, B, D, and E are not necessarily true or relevant to the goal of maximizing the current value per share.

Financial Managers Should Strive to Maximize the Current Value Per