Question

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to __________.
a. Maximize its expected total corporate income.
b. Maximize its expected EPS.
c. Maximize the stock price per share over the long run, which is the stock's intrinsic value.
d. Maximize the stock price on a specific target date.

Answer 1

Answer:

The primary goal of a publicly-owned  firm interested in servicing its stockholders should be to maximize  the stock price per share over the long-run, which is the stock's intrinsic value.

The correct answer is B

Explanation:

The primary goal of a publicly-owned firm is to maximize shareholders' wealth.  Maximization of shareholders' wealth focuses on the maximization of share price of a firm in the stock market.