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American_Bankers_Association

CTFA · Question #20

The long-run objective of financial management is to:

The correct answer is B. Maximize the value of the firm's common stock. See the full explanation below for the reasoning.

Investment Management

Question

The long-run objective of financial management is to:

Options

  • AMaximize earnings per share
  • BMaximize the value of the firm's common stock
  • CMaximize return on investment
  • DMaximize market share

How the community answered

(24 responses)
  • A
    4% (1)
  • B
    83% (20)
  • C
    8% (2)
  • D
    4% (1)

Topics

#financial management objective#shareholder value#stock price maximization#firm value

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