Question
The role of financial managers is maximizing shareholders wealth. In order to achieve this, a financial manager would like to increase the firms stock price.
The role of financial managers is maximizing shareholders wealth. In order to achieve this, a financial manager would like to increase the firms stock price. Therefore, the goal of financial managers is to maximize the current share price. If we assume that the financial market is efficient, why is the goal of a financial manager to maximize the firms current share price rather than future share price? In other words, are there any differences between the goal of maximizing current share price and the goal of maximizing future stock price? Discuss the reasons why. (Word limit: 300 words, excluding references)
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