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Why is the goal of financial management to maximiize the current share price of the company's stock in other words why isn't the goal to maximize the future share price?
Wiki User
∙ 11y ago
Maximizing the current share price is the same as maximizing the future share price at any future period. The value of a share of stock depends on all of the future cash flows of company. Another way to look at this is that, barring large cash payments to shareholders, the expected price of the stock must be higher in the future than it is today. Who would buy a stock for $100 today when the
share price in one year is expected to be $80?
Wiki User
∙ 11y ago
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What is the goal of financial management?
To Maximize shareholder wealth.
Why is the goal of financial management to maximize the current share price of the company's stock instead of maximizing the future share price?
The question is misleading. In fact the goal of financial management is to maximize future share prices. Current share prices are a reflection of past financial decisions. David
What are financial objectives of multinational companies?
to maximize profits for their owners.
How might the primary goal of financial management be applied to a non-profit organization?
The primary goal of financial management is to increase the market value of the owners equity . for non profit organization this goal would need modified . one suggestion would be to maximize the value of the service rendered to society given the resources available to the organization
How a financial manager can maximize the wealth of shareholders?
effects of donations and sponsership on maxsimising shareholders wealth?
The objective of Management is to maximize profits?
It is a true statement that the objective, or goal, of management is to maximize profits. Another term for profit would be financial gain.
What is the importance of a consulting customer management relationship?
A consulting management relationship can improve the a companys interaction with its clients and sale prospects. This can extend company life and maximize company profits.
What is the goal of financial management?
To Maximize shareholder wealth.
Why is the goal of financial management to maximize the current share price of the company's stock instead of maximizing the future share price?
The question is misleading. In fact the goal of financial management is to maximize future share prices. Current share prices are a reflection of past financial decisions. David
What is financial management decisions?
decision that increases the value of their shares, Thus while performing the finance function, the financial managershould strive to maximize .
What is corporate financial management?
Corporate financial management refers to the discipline and strategies used by companies to manage their financial resources and make informed decisions about investments, expenses, and financing. It involves a wide range of activities, including financial planning, budgeting, cash flow management, risk assessment, and capital structure management. The goal of corporate financial management is to maximize shareholder value and ensure the long-term financial stability and success of the company.
Why is the goal of financial management to maximize the current share price of the company's stock?
doing so quarantees the company will grow in size at the maximum possible rate
What are financial objectives of multinational companies?
to maximize profits for their owners.
Financial management and financial accounting?
Financial Mgmt Financial Accounting Financial management is the process of planning, organizing, controlling, and monitoring financial resources in order to achieve an organization's goals and objectives. It involves making decisions about how to allocate financial resources in order to maximize the value of the organization. Some of the key activities involved in financial management include financial planning, budgeting, forecasting, and decision-making. Financial accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. It involves preparing financial statements, such as the balance sheet, income statement, and statement of cash flows, which provide a snapshot of a company's financial position at a specific point in time. Financial accounting is focused on the past, while financial management is focused on the future. My Recommendation ｈｔｔｐｓ：／／ｗｗｗ．ｄｉｇｉｓｔｏｒｅ２４．ｃｏｍ／ｒｅｄｉｒ／３７２５７６／ｐｒａｖｅｅｎｒｐｓ／
How might the primary goal of financial management be applied to a non-profit organization?
The primary goal of financial management is to increase the market value of the owners equity . for non profit organization this goal would need modified . one suggestion would be to maximize the value of the service rendered to society given the resources available to the organization
How a financial manger minimize cost of capital and maximize the profitability?
please its urgent
What is the meaning of diversity management?
Providing opportunity for all employees to maximize their potential
