Respuesta :
The primary operating goal of a publicly-owned firm trying to best serve its stockholders should be to maximize the firm's expected EPS, which must also maximize the firm's price per share.
What is a a publicly-owned firm?
A publicly-owned firm is a firm that is owned by members of the public who buy shares in the firm and thus become shareholders. Managers are employed to run the firm.
As the value of shares of the publicly-owned firm increases, the wealth of shareholders also increase.
Here is the complete question:
The primary operating goal of a publicly-owned firm trying to best serve its stockholders should be to
a Maximize managers' own interests, which are by definition consistent with maximizing shareholders' wealth.
b. Maximize the firm's expected EPS, which must also maximize the firm's price per share.
c. Minimize the firm's risks because most stockholders dislike risk. In turn, this will maximize the firm's stock price.
d. Use a well-structured managerial compensation package to reduce conflicts that may exist between stockholders and managers.
e 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.
To learn more about publicly-owned firms, please check: https://brainly.com/question/26194963
