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 Mar 19, 2021

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

Expert Solution

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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