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If management operates to maximize the firm's profits, this will also maximize the market value of stockholders' wealth. a. True b. False
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If management operates to maximize the firm's profits, this will also maximize the market value of stockholders' wealth.

a. True
b. False

User Muhammad Alvin
by
5.7k points

1 Answer

3 votes

Answer:

b. False

Step-by-step explanation:

The shareholder wealth could be maximized when there is a rise in the stock price as when the stock price rises, it automatically rised the value of the firm and the net worth also

Therefore in the given situation, in case when the firm wants to maximise its profits so it not necessary to increased the market value

Therefore the given statement is false

User Ray Foss
by
5.6k points
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