19) The primary goal of a publicly owned corporation is to ________. A) Maximize

Question

19) The primary goal of a publicly owned corporation is to ________.
A) Maximize dividends per share.
B) Maximize shareholder wealth.
C) Maximize earnings per share after taxes.
D) Minimize shareholder risk.



20) A financial manager is considering two projects, A and B. A is expected to add $2 million to profits this year while B is expected to add $1 million to profits this year. Which of the following statements is most correct?
A) The manager should select project A because it maximizes profits.
B) The manager should select the project that maximizes long-term profits, not just one year of profits.
C) The manager should select project A or he is irrational.
D) The manager should select the project that causes the stock price to increase the most, which could be A or B.

Explanation / Answer

19) The primary goal of a publicly owned corporation is to ________.
A) Maximize dividends per share.
B) Maximize shareholder wealth.
C) Maximize earnings per share after taxes.
D) Minimize shareholder risk.



20) A financial manager is considering two projects, A and B. A is expected to add $2 million to profits this year while B is expected to add $1 million to profits this year. Which of the following statements is most correct?
A) The manager should select project A because it maximizes profits.
B) The manager should select the project that maximizes long-term profits, not just one year of profits.
C) The manager should select project A or he is irrational.
D) The manager should select the project that causes the stock price to increase the most, which could be A or B.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.