Question

The primary goal of financial management is to:

(A) maximize current dividends per share of the existing stock.
(B) maximize the current value per share of the existing stock.
(C) avoid financial distress.
(D) minimize operational costs and maximize firm efficiency.
(E) maintain steady growth in

Answer 1

Answer:

The correct answer is letter "B": maximize the current value per share of the existing stock.

Explanation:

Financial management comprises several steps to safeguard a company's assets and sustain the firm's profitability in favor of its stakeholders. Those steps include planning, budgeting, managing and assessing risks and establishing the procedures that will be taken to keep the business going.

Thus, one of the cores of financial management is to increase the company's stock value to attract more investors, bringing more money to the company for reinvestment or the payment of expenditures.