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: Because they have been hired to represent the interests of the current shareholders