If management operates in a manner designed to maximize the firm’s expected profits for the current year, this will also maximize the stock

If management operates in a manner designed to maximize the firm’s expected profits for the current year, this will also maximize the stockholders’ wealth as of the current year. True or false?

0 thoughts on “If management operates in a manner designed to maximize the firm’s expected profits for the current year, this will also maximize the stock”

  1. Answer:

    False

    Explanation:

    The stockholders’ wealth is likely to be maximized when profits are actually maximized or there has been an increase Earnings Per Share (EPS) compared to previous years.

    Reply

Leave a Comment

+ seventy six = 78