Question

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?a. An increase in the amount of the quarterly dividendb. A decrease in the per unit production costsc. An increase in the number of shares outstandingd. A decrease in the net working capitale. An increase in the market va

Answer 1

Answer:

increase in the market value per share

Explanation:

Market value per share is the price that the share of a company can be traded if it is to be sold to a willing investor in a stock market.

The market value per share is determined by the company's financial performance, favorable market information concerning the enterprise, perceived future prospects plus investors or public confidence.

One of the goals of financial management is the maximization of the shareholders wealth, this will find expression in how the business actions or inaction of the management has enriched the shareholders.