Financial Managers Should Strive to Maximize the Current Value Per

question 15

Multiple Choice

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

• A) guarantee the company will grow in size at the maximum possible rate.
• B) increase employee salaries.
• C) best represent the interests of the current shareholders.
• D) increase the current dividends per share.
• E) provide managers with shares of stock as part of their compensation.

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Definitions:

Essential Terms

The necessary and fundamental conditions included in a contract that are critical to its enforcement and validity.

Unenforceable

Refers to a contract or clause that, due to legal deficiencies, cannot be executed by a court.

Enforceable Contract

A binding legal agreement between two or more parties that is recognized by the law and has elements of offer, acceptance, consideration, and mutual consent.

Party Against Enforcement

The individual or entity against whom the application of a law, regulation, or contract is sought to be enforced.