Financial Managers Should Strive to Maximize the Current Value Per

question 114

Multiple Choice

Financial managers should strive to maximize the current value per share of the existing stock because:

• A) Doing so guarantees the company will grow in size at the maximum possible rate.
• B) Doing so increases the salaries of all the employees.
• C) They have been hired for the purpose of representing the interest of the current shareholders.
• D) Doing so means the firm is growing in size faster than its competitors.
• E) The managers often receive shares of stock as part of their compensation.

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Definitions:

Oxygen

A colorless, odorless, tasteless gas found in the air; chemical symbol, O2.

Binge

A spree; to overindulge, such as with alcohol or food.

Overindulge

To engage excessively in an activity or consumption, typically eating, drinking, or other forms of pleasure, to a degree that may be harmful.

Alcohol

A chemical substance found in drinks such as beer, wine, and spirits that can cause intoxication and has various effects on the body.