Another name for stockholder wealth maximization is
A)profit maximization.
B)maximization of earnings per share.
C)maximization of the value of the common stock.
D)maximization of cash flows.

Question

Quizplus · Accepted Answer

Stockholder wealth maximization is about maximizing the value of the common stock, which takes into account factors such as earnings per share, cash flows, and long-term profitability. While profit maximization and maximization of earnings per share may contribute to the value of the common stock, they are not synonymous with stockholder wealth maximization. Maximizing cash flows is also important for stockholder wealth maximization, but it is not the only factor that determines the value of the common stock.

Another Name for Stockholder Wealth Maximization Is