The financial manager should ________.
A) try to maximize the after-tax payout to the shareholders, for a given payout amount
B) try to minimize the firm's earnings per share
C) never pay dividend as a payout policy
D) only repurchase shares as a payout policy

Question

Quizplus · Accepted Answer

The financial manager should try to maximize the after-tax payout to the shareholders, for a given payout amount, as it is aligned with the goal of maximizing shareholder wealth. Minimizing the firm's earnings per share and never paying dividends as a payout policy are not sound financial decisions. Repurchasing shares as a payout policy may not always be the best option, as it depends on the company's financial situation and market conditions.

The Financial Manager Should ________