The _________ aim of financial management is to maximize shareholder's wealth, which is referred to as the wealth maximization.

primary

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secondary

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final

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alternative

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Solution

The correct option is D primary
The most widely accepted objective of the firm is to maximize the value of the firm for its owners, that is, to maximize shareholder wealth. Shareholder wealth is represented by the market price of a firm’s common stock.
The shareholder wealth maximization goal states that management should seek to maximize the present value of the expected future returns to the owners (that is, shareholders) of the firm.

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