The financial manager should:

Question

Quizplus · Accepted Answer

The financial manager should try to maximize the after-tax payout to the shareholders, for a given payout amount. This means that the financial manager should focus on balancing the need to distribute profits to shareholders with the need to reinvest profits in the company to support its long-term growth and success. Maximizing earnings per share or paying the highest dividend possible may not necessarily be the best decision for the company's overall financial health and future success. Additionally, never paying a dividend may not be a feasible or desirable option for many companies.

The Financial Manager Should