For corporations, maximizing the value of owner's equity can also be stated as
A) maximizing retained earnings.
B) maximizing earnings per share.
C) maximizing net income.
D) maximizing the stock price.

Question

Quizplus · Accepted Answer

Maximizing the value of owner's equity for corporations is most directly related to maximizing the stock price. This is because the stock price reflects the market's valuation of the company, incorporating expectations of future profitability, growth, and risk, which in turn affects the value of the owners' equity.

For Corporations, Maximizing the Value of Owner's Equity Can Also