Which of the following best describes the role of financial managers?
A)Maximization of the total market value of the firm's common stock
B)Profit maximization
C)Risk minimization
D)None of the above

Question

Quizplus · Accepted Answer

Financial managers are responsible for maximizing the total market value of the firm's common stock. While profit maximization and risk minimization are important goals, they are not the primary role of financial managers. The ultimate goal of financial management is to increase shareholder value, which is accomplished through increasing the market value of the firm's stock.

Which of the Following Best Describes the Role of Financial