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Management · Q144

Financial Management

Graduate and Post Graduate · Management · question 144

Q144

__________ is concerned with the maximization of a firm's stock price.

A.
Shareholder wealth maximization
Answer
B.
Profit maximization
C.
Stakeholder welfare maximization
D.
EPS maximization

Answer: Option A

Solution

Answer: Option A
Solution:
Shareholder wealth maximization is concerned with the maximization of a firm's stock price. The shareholder wealth maximization goal states that management should seek to maximize the present value of the expected future returns to the owners (that is, shareholders) of the firm.