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Q: Why is the goal of financial management to maximize the current share price of the copany's stock?
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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?

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


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 it important for the Bureau of Land Management to have current land use plans in place?

It is important for the Bureau of Land Management to have the current land use plans in place to maximize its productivity. When the productivity is maximized the profits are maximized as well.


Which financial ratio is the best measure of the operating effectiveness of a firms management?

current ratio


What application do management information systems have in financial management?

The chief financial officer analyzes historical and current financial activity, projects future financial needs, and monitors and controls the use of funds over time using the information developed by the MIS department.


What goal should always motivate the actions of the firms financial manager?

it is to maximize the current value per share of the existing stock or ownership in a business firm.


Explain wealth maximization and value maximization objectives of financial management?

Wealth maximization of financial management focuses on increasing fixed and current assets while value maximization focuses to strengthen intangible assets.


Why currentliabilities less from current asset when calculating working capital in financial management?

Working capital is that amount of money which is available for management to use for day to day business activities and it is assumed that management should maintain enough current assets to pay off current liabilities as they become due that;s why amount above current liabilities is the free working capital available for management and that's why current liabilities are deducted from current assets to find out the free cash flow to use.


What is the importance of treasury management under harsh economic conditions?

Treasury management involves the process of managing the cash, investments and other financial assets of the business. The goal of these activities is to optimize current and medium-term liquidity and make solid financial decisions involving invested and investable assets. Treasury management also includes hedging where needed to reduce financial risk exposure. Treasury management's functions include: - Cash Flow Management - Float - Relationships and Risks - Information Sharing


Managing short term asset and liabilities is sometimes called ------- management?

Management of short term assets (current assets) and short term liabilities (current liabilities) is commonly known as working capital management.Working capital is a requirement of funds to meet the day to day working expenses. In a simple term working capital is an excess of current assets over the current liabilities. In working capital management we focus more on receivables management, cash management and inventory management etc. Proper way of management of working capital is highly essential to ensure a dynamic stability of the financial position of an organization.


What is financial risk management?

Financial Risk Management is a process of evaluating and managing current and possible financial risk at a firm as a method of decreasing the firm's exposure to the risk. Financial risk managers must identify the risk, evaluate all possible remedies, and then implement the steps necessary to alleviate the risk. These risks are typically remedied by using certain financial instruments as a method of counteracting possible ramifications. Financial risk management cannot prevent a firm from all possible risks because some are unexpected and cannot be addressed quickly enough.


When was Prayer for the Current Financial Situation created?

Prayer for the Current Financial Situation was created in 2008.