A. Why is the goal of financial management to maximize the current share price of the company's stock and not the future share price?
A. Why is the goal of financial management to maximize the current share price of the company's stock and not the future share price?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A. Why is the goal of financial management to maximize the current share price of
the company's stock and not the future share price?
Expert Solution
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Step 1
The answer for the question on the financial management is discussed hereunder :
What is Financial management?
Financial management ensures the financial soundness of the organisation in order to meet its financial obligations by regulating the flow of finance ie inflows and outflows of finance.
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