Fi 360 unit 8 final exam - Study guides, Class notes & Summaries

FI 360 Unit 8 Final Exam (Financial Management) Questions and Answers (Graded). The primary operating goal of a publicly-owned firm trying to best serve its stockholders should be to 2/42 Since it is impossible to measure a stock's intrinsic value, the text states that it is better for managers to attempt to maximize the current stock price than its intrinsic value. Use a well-structured managerial compensation package to reduce conflicts that may exist between stockholders and managers...

The primary operating goal of a publicly-owned firm trying to best serve its stockholders should be to 2/42 Since it is impossible to measure a stock's intrinsic value, the text states that it is better for managers to attempt to maximize the current stock price than its intrinsic value. Use a well-structured managerial compensation package to reduce conflicts that may exist between stockholders and managers. Maximize the firm's expected EPS, which must also maximize the firm's price ...