Decisions made by financial managers should primarily focus on increasing which one of the following?
A)size of the firm
B)growth rate of the firm
C)gross profit per unit produced
D)market value per share of outstanding stock
E)total sales

Question

Quizplus · Accepted Answer

Financial managers should prioritize increasing the market value per share of outstanding stock as this ultimately maximizes the wealth of the firm's shareholders. Increasing the size of the firm or total sales may not necessarily lead to an increase in shareholder wealth. Growth rate and gross profit per unit produced are important considerations but are not the primary focus of financial decision-making.

Decisions Made by Financial Managers Should Primarily Focus on Increasing