If management is maximizing the firm's net income,this is necessarily identical to maximizing earnings per share and stock price.

Question

Quizplus · Accepted Answer

Maximizing net income does not necessarily mean maximizing earnings per share and stock price. Other factors such as the number of outstanding shares, dividends, and market conditions can also affect stock price. Additionally, maximizing net income may require reinvesting profits in the business rather than distributing them to shareholders.

If Management Is Maximizing the Firm's Net Income,this Is Necessarily