How should financial managers strive to maximize the current value?
general partnership. 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. best represent the interests of the current shareholders.
What should a financial manager strive to achieve?
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. best represent the interests of the current shareholders. increase employee salaries.
Why do managers often receive shares of stock in their compensation?
Because they have been hired to represent the interests of the current shareholders. D. 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 compensation. C. Because they have been hired to represent the interests of the current shareholders.
What interests should financial managers primarily focus on?
Financial managers should primarily focus on the interests of: the board of directors. stakeholders. shareholders. their immediate supervisor. the vice president of finance. shareholders.
Why do financial managers emphasize the goal of maximizing the market price of stock?
Financial managers emphasize the goal of maximizing the market price of stock because they have a legal and ethical obligation to make decisions consistent with the financial interests of their firm's owners. The degree of uncertainty regarding the outcome of a decision.
What do financial manager try to maximize and what is their second objective?
The primary objective of financial management is to maximize the profit of the organization. However, the organization also seeks to maximize the wealth and value by maximizing the returns to shareholders.
What variable is the financial manager seeking to maximize?
The goal of a financial manager is to maximize the wealth of the shareholders (they implement this by maximizing the value of the company's assets).
Which one of the following actions by a financial manager is most apt to create an agency problem?
Which one of the following actions by a financial manager is most apt to create an agency problem? Increasing current profits when doing so lowers the value of the firm's equity.
How do financial managers maximize shareholders wealth?
The shareholder wealth maximization goal states that management should seek to maximize the present value of the expected future returns to the owners (that is, shareholders) of the firm. These returns can take the form of periodic dividend payments or proceeds from the sale of the common stock.
What do you understand by financial management discuss the concept of value maximization and profit maximization?
Wealth Maximization consists of a set of activities that manage the financial resources intending to increase the value of the stakeholders, whereas, Profit Maximization consists of the activities that manage the financial resources intending to increase the profitability of the company.
Why the financial manager should maximize their wealth?
In summary, wealth maximization as an objective to financial management and other business decisions enables the shareholders to achieve their objectives and therefore is superior to profit maximization. It is a decision criterion for financial managers being used for all the decisions.
What is the importance of a stock market to a financial manager?
Shares of a company are traded on stock exchange and there is a continuous sale and purchase of securities. Hence a clear understanding of capital market is an important function of a financial manager. When securities are traded on stock market there involves a huge amount of risk involved.
What a financial manager will do in order to maximize wealth as well as profit to the organization?
The financial manager's responsibilities include financial planning, investing (spending money), and financing (raising money). Maximizing the value of the firm is the main goal of the financial manager, whose decisions often have long-term effects.
Which one of these represents the best means of increasing current shareholder value?
Which one of these represents the best means of increasing current shareholder value? Increasing the current value of the overall firm.
What's 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.
Whose interests should financial managers primarily focus on?
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.