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Homework answers / question archive / The ultimate goal of financial management is to maximize which one of the following for a corporation?   Revenue growth Current profits Market value of existing stock Number of shares outstanding

The ultimate goal of financial management is to maximize which one of the following for a corporation?   Revenue growth Current profits Market value of existing stock Number of shares outstanding

Finance

The ultimate goal of financial management is to maximize which one of the following for a corporation?

 

Revenue growth

Current profits

Market value of existing stock

Number of shares outstanding

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The main objective of financial management is shareholder's wealth maximization. The finance manager needs to take many decisions so as to maximize the shareholder's wealth. 

Market value of share = Current Price per share * Number of shares outstanding in the market

So, The ultimate goal of financial management is to maximize "Market value of existing stock".

The correct option is "3rd".

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