BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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maximize dividends per share
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maximize shareholder wealth
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maximize earnings per share after taxes
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minimize shareholder risk
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Detailed explanation-1: -The main goal of virtually every publicly-owned company has always been to maximize shareholder value by generating as much profit as possible. However, many companies have begun to balance this primary objective with other social and environmental goals that help appease stakeholders and help produce those profits.
Detailed explanation-2: -Shareholder wealth maximization is the idea that the main goal of a business’s managers should be to increase its stock price as much as possible.
Detailed explanation-3: -Corporate management and investor actions have focused almost exclusively on increasing shareholder returns as the primary goal and determinant of corporate success. The doctrine is referred to commonly as the shareholder wealth maximization theory (SWM or simply “shareholder theory”).