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WARRIOR [948]
2 years ago
5

Why should financial managers strive to maximize the current value per share of the existing stock?.

Business
1 answer:
coldgirl [10]2 years ago
5 0

Financial managers should strive to maximize the current value per share of the existing stock because they have been hired to represent the interests of the shareholders.

Financial managers

  • The management team of a corporation includes financial managers. To continue operating and turning a profit, they must make sure the company's finances are in order.
  • Because they have been recruited to represent the interests of the shareholders, financial managers should work to maximise the current value per share of the company's existing stock.
  • The wealth of shareholders should be the primary objective of financial management. Investors in a corporation put their own money into it, thus they are expecting a certain return. When the value of the company's shares rises, the return might be realised.
  • When stock prices rise, the value of the entire business rises as well, boosting the wealth of the shareholders. Consequently, financial managers should constantly work to Because they work for the company's owners and it is what the owners expect of them, they must maximise the present price per share of stock.

To know more about Financial managers visit:

brainly.com/question/18915851

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