maximization of shareholder wealth as a goal is superior to accounting profit maximization because\n\na. it…

maximization of shareholder wealth as a goal is superior to accounting profit maximization because\n\na. it considers the time value of the money.\nb. following the shareholder wealth maximization goal will ensure high stock prices.\nc. accounting profits are not the same as cash flows.\nd. a and c.

maximization of shareholder wealth as a goal is superior to accounting profit maximization because\n\na. it considers the time value of the money.\nb. following the shareholder wealth maximization goal will ensure high stock prices.\nc. accounting profits are not the same as cash flows.\nd. a and c.

Answer

Brief Explanations:

Maximizing shareholder wealth takes into account the time - value of money, which accounting profit maximization may not. Also, accounting profits don't equal cash flows, and shareholder wealth is more related to cash - flow based valuations. While shareholder wealth maximization aims for high stock prices, it's not the main reason it's superior.

Answer:

D. A and C.