Which one of the following best illustrates that the management of a firm is adh

Question

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?

increase in the amount of the quarterly dividend

decrease in the per unit production costs

increase in the number of shares outstanding

Increase the price of one share

decrease in the market value per share

increase in the amount of the quarterly dividend

decrease in the per unit production costs

increase in the number of shares outstanding

Increase the price of one share

decrease in the market value per share

Explanation / Answer

A firm value will maximise if its share value is maximised. Management and financial management should always improve to increase the EPS thereby will cause firm value to increase.

Hence, correct option is Increase the price of one share.

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