What is the normative goal of financial management?

Question: What is the normative goal of financial management?

The normative goal of financial management is to maximize shareholder wealth or value by making decisions that increase the long-term value of the company through maximizing profits, optimizing capital structure, and managing risk. This approach assumes that shareholders are the ultimate owners of the company and that their interests should be prioritized over those of other stakeholders, such as employees, customers, or the broader community.

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