Ask Question
BusinessBusiness
9 October, 01:32

If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should: A) positively affect profits. B) increase the market value of the firm's common stock. C) either increase or have no effect on the value of the firm's common stock. D) accomplish all of the above.

+3
Answers (1)
  1. 9 October, 03:37
    0
    It is to increase the market value of the firm's common stock (B)

    Explanation:

    Profits : it is subjective in nature and can be manipulated. Hence, it is not good measure of shareholders wealth maximization.

    Increase the market value of the firm's common stock : This is difficult to manipulate because it results from long-term view of business performance through investment in a viable projects. When the company produces good result that give investors good return for their capital, this will have a positive market impact on the share price of the company.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should: A) ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is true of brand equity? Multiple Choice It is a tangible asset that adds value to a service. It allows the seller to use undifferentiated marketing. It enables the seller to hide product successes from its competition.
Answers (1)
The cost of debt, rd, is normally less than rs, so rd (1 - T) will normally be much less than rs. Therefore, as long as the firm is not completely debt financed, the weighted average cost of capital (WACC) will normally be greater than rd (1 - T).
Answers (1)
Using aggregate supply and demand curves drawn according to the Keynesian view, which of the following will occur if the Fed buys bonds in the open market and the economy is below full employment? a.
Answers (1)
Which employees have an impact on the operation and effectiveness of internal controls?
Answers (1)
What is the most effective way to balance work and personal responsibilities
Answers (1)
New Questions in Business
Which of the following is not an example of a group responding to an incentive? a. Students attend class because of an attendance policy that reduces their grade for absences. b. Consumers buy more of a product when it is on sale at a reduced price.
Answers (1)
Ace Hardware purchased 15 shovels from Skill Company for $7.00 each. Ace's markup is 33% on selling price. What should Ace charge for the shovels? (Round to hundredths.)
Answers (1)
13. What entity is responsible for overseeing the accounting profession? a. The SEC b. The President c. The AICPA d. The IRS e. I do not know
Answers (2)
If it is known that the income elasticity of demand for the same good is 2.5, estimate the percentage change in demand if consumer income increases from $100 to $300.
Answers (1)
Trevor's peers were surprised when he received a promotion and suddenly became their supervisor. They thought he was rather unreliable and weren't sure he was up to the task. According to the contingency model, Trevor has A. poor worker facilitation.
Answers (1)
Home » Business » If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should: A) positively affect profits. B) increase the market value of the firm's common stock.
Sign Up Forgot Password?