Which of the following is the best example of a well-stated financial objective? A) Increase market share by 3% annually for the next 3 years. B) Gradually boost market share from 10% to 15% over the next several years. C) Boost revenues by a percentage greater than the industry average. D) Achieve lower costs than any other industry competitor. E) Increase earnings per share by 15% annually.
Which of the following is the best example of a well-stated financial objective? A) Increase market share by 3% annually for the next 3 years. B) Gradually boost market share from 10% to 15% over the next several years. C) Boost revenues by a percentage greater than the industry average. D) Achieve lower costs than any other industry competitor. E) Increase earnings per share by 15% annually.
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 2STP
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Question
Which of the following is the best example of a well-stated financial objective?
A) Increase market share by 3% annually for the next 3 years.
B) Gradually boost market share from 10% to 15% over the next several years.
C) Boost revenues by a percentage greater than the industry average.
D) Achieve lower costs than any other industry competitor.
E) Increase earnings per share by 15% annually.
Expert Solution
Step 1
The well stated financial objectives properly the reflecting all the objectives of the company within the desired time period and the rate of return will also be specifically provided.
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