When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to maximize shareholder value.

Question

Quizplus · Accepted Answer

Financial managers have a responsibility to maximize shareholder value, and making decisions that positively impact the share price of the firm's stock typically aligns with that goal. Therefore, financial managers should consider the potential impact on the share price when evaluating financial decision alternatives.

When Considering Each Financial Decision Alternative or Possible Action in Terms