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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?
Wiki User
∙ 12y ago
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
Wiki User
∙ 12y ago
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What is the goal of financial management?
To Maximize shareholder wealth.
What is maximizing corporate profits?
Maximizing corporate profits is a kind of idea which is simple, obvious and straightforward. To maximize a profit is to squeeze in as much value of a certain resources as possible.
What are financial objectives of multinational companies?
to maximize profits for their owners.
In financial theory the objective is to maximize shareholder wealth and not maximize profit?
Maximizing shareholder wealth and maximizing profit goes hand in hand. A firm maximizes shareholder wealth by investing in projects that will increase profits and the cash flows of the firm, finding ways to prudently cut variable and fixed operating costs and creating products that will increase revenues. The firm's executives must also manage the company and its operations in a fiscally responsible manner in order to increase the profitability of the company. By taking these steps the firm therefore increases the shares of its stocks which increases shareholder wealth.
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
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 noun of maximize?
The noun forms of the verb to maximize are maximizer, maximization, and the gerund, maximizing.
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.
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 maximizing corporate profits?
Maximizing corporate profits is a kind of idea which is simple, obvious and straightforward. To maximize a profit is to squeeze in as much value of a certain resources as possible.
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.
What are the primary objectives of financial managers?
The success or failure of a company, is highly dependent on its ability to effectively manage and increase its value ever fiscal year. The implicit financial management goals for managers and directors of a company, is to run in the interest of shareholders and shareholder wealth for long term profitability.
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
Why is maximizing the ratio of lift to drag forces desirable?
engineers generally want a Lift to Drag ratio to maximize the distance which an aircraft can fly.
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／
