Why should financial managers strive to maximize the current value per share of the existing stock? -doing so guarantees the company will grow in size at the maximum possible rate -doing so increases employee salaries -because they have been hired to represent the interests of the current shareholders -because this will increase the current dividends per share -because managers often receive shares of stock as part of their compensation
Why should financial managers strive to maximize the current value?
Feb 27, 2021 · a. Because this will increase the current dividends per share. b. Because they have been hired to represent the interests of the current shareholders. C. Doing so increases employee salaries. Doing so guarantees the company will grow in size at the maximum possible rate. e. Because managers often receive shares of stock as part of their ...
Why do managers often receive shares of stock in their compensation?
A. doing so guarantees the company will grow in size at the maximum possible rate B. doing so increases employee salaries C. because they have been hired to represent the interests of the current shareholders D. because this will increase the current dividends per share E. because managers often receive shares of stock as part of their compensation
What are the advantages of increasing the compensation of managers?
22. Why should financial managers strive to maximize the current value per share of the existing stock? A. doing so guarantees the company will grow in size at the maximum possible rate B. doing so increases employee salaries C. because they have been hired to represent the interests of the current shareholders D. because this will increase the current dividends per share E. …
Why do managers of a company pay dividends to shareholders?
Financial Management Why should financial managers strive to maximize the current value per share of the existing stock? -Doing so guarantees the company will grow in size at the maximum possible rate. -Doing so increases employee salaries. -Because they have been hired to represent the interests of the current shareholders.
Why maximizing the current value per share of existing stock is the correct goal of financial management?
Financial managers should strive to maximize the current value per share of the existing stock to: guarantee the company will grow in size at the maximum possible rate.
What should be the primary focus on the interest of financial manager?
The finance manager of an organization is focused on the personal interest of the company's shareholders. Shareholders are the owners of the organization's equity shares.
What is the primary goal of financial management?
to maximize shareholder wealthThe goal of financial management is to maximize shareholder wealth. For public companies this is the stock price, and for private companies this is the market value of the owners' equity.
Which one of the following best describes the goal of a financial manager in a corporation?
Which one of the following best states the primary goal of financial management? Maximize the current value per share.
Why should financial managers strive to Maximise the current value?
Why should financial managers strive to maximize the current value per share of the existing stock? Doing so guarantees the company will grow in size at the maximum possible rate. Doing so increases employee salaries.
Which of the following should a good financial manager try to maximize?
Financial managers should strive to maximize the current value per share of the existing stock to: best represent the interests of the current shareholders.
How do financial managers maximize shareholder value?
A goal of financial management can be to maximize shareholder wealth by paying dividends and/or causing the market value to increase.
What is the importance of financial management?
Financial management provides pathways to attain goals and objectives in an organisation. The main duty of a financial manager is to measure organisational efficiency through proper allocation, acquisition and management. It provides guidance in financial planning. It assists in acquiring funds from different sources.Aug 6, 2020
What do financial managers try to maximize and what is their second objective?
It considers the effect of earnings per share, dividends paid or any other return to shareholders on the wealth of the shareholders. We can say that wealth maximization should be the primary objective and profit maximization should be the secondary objective of the firms.
Which one of the following actions by a financial manager is most aligned with the goal of financial management?
The correct answer is C- agreeing to expand the company at the expense of stockholders' value. Financial mangers aim at maximizing shareholders wealth...
What should be included in a financial analysis?
A proper analysis consists of five key areas, each containing its own set of data points and ratios.Revenues. Revenues are probably your business's main source of cash. ... Profits. ... Operational Efficiency. ... Capital Efficiency and Solvency. ... Liquidity.Aug 6, 2021
Which of the following states is the best primary goal of financial management?
The best states the primary goal of financial management is maximize the current value per share.