Why Should Financial Managers Strive to Maximize the Current Value

question 6

Multiple Choice

Why should financial managers strive to maximize the current value per share of the existing stock?

• A)doing so guarantees the company will grow in size at the maximum possible rate
• B)doing so increases employee salaries
• C)because they have been hired to represent the interests of the current shareholders
• D)because this will increase the current dividends per share
• E)because managers often receive shares of stock as part of their compensation

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