When considering a firm's financial decision alternative, financial managers should accept only those actions that are expected to maximize shareholder value.

Question

Quizplus · Accepted Answer

Maximizing shareholder value is the primary objective of financial managers and the ultimate goal of any business firm. Therefore, any financial decision alternative should be evaluated based on its potential to increase the value of the firm and increase returns for shareholders.

When Considering a Firm's Financial Decision Alternative, Financial Managers Should