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Question 215 - CTFA discussion

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Which of the following statements is not correct regarding earnings per share (EPS) maximization as the primary goal of the firm?

A.
EPS maximization ignores the firm's risk level
Answers
A.
EPS maximization ignores the firm's risk level
B.
EPS maximization does not specify the timing or duration of expected EPS
Answers
B.
EPS maximization does not specify the timing or duration of expected EPS
C.
EPS maximization naturally requires all earnings to be retained
Answers
C.
EPS maximization naturally requires all earnings to be retained
D.
EPS maximization is concerned with maximizing net income
Answers
D.
EPS maximization is concerned with maximizing net income
Suggested answer: D
asked 16/09/2024
Daniel Adebayo
43 questions
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