Question

Why should financial managers strive to maximize the current value per share of the existing stock? -doing so guarantees the company will grow in size at the maximum possible rate -doing so increases employee salaries -because they have been hired to represent the interests of the current shareholders -because this will increase the current dividends per share -because managers often receive shares of stock as part of their compensation

Answer 1

The answer is: Because they have been hired to represent the interests of the current shareholders.

Step-by-step explanation:

One of the basic roles of management is to maximize the wealth and value of the corporation. The parameter used to measure this is stock value. As the price of stock increases, the higher the value of the corporation and the more wealth the shareholders possess.