The primary goal of financial management is to:
A)maximize current dividends per share of the existing stock.
B)maximize the current value per share of the existing stock.
C)avoid financial distress.
D)minimize operational costs and maximize firm efficiency.
E)maintain steady growth in both sales and net earnings.

Question

Quizplus · Accepted Answer

The primary goal of financial management is to maximize the current value per share of the existing stock. This is achieved by making decisions that increase the profitability and efficiency of the company, leading to higher stock prices and returns for shareholders. Other goals such as avoiding financial distress, minimizing operational costs and maximizing firm efficiency are important but are secondary to the main goal of maximizing the value of the company for shareholders.

The Primary Goal of Financial Management Is To