In corporate financial management, what is generally regarded as the primary goal of the financial manager of a company with common stock already outstanding?

Introduction / Context:
In corporate finance, textbooks and professional practice emphasize a clear primary objective for financial management. While companies may pursue many goals such as growth, cost control, and profitability, one central goal aligns management decisions with the interests of shareholders in a measurable way. This question asks you to identify that primary goal.

Given Data / Assumptions:

• The firm is organized as a company with common stock already outstanding.
• Financial management decisions include investment, financing, and dividend choices.
• The goal should be measurable and aligned with shareholder interests over time.
• Only one option reflects the widely accepted objective in modern corporate finance.

Concept / Approach:
The standard objective of financial management is to maximize shareholder wealth. In practice this is usually expressed more precisely as maximizing the current market value per share of the existing common stock. This formulation incorporates both current and future cash flows, risk, and timing, because all these elements are reflected in the share price in an efficient market. Other goals such as sales growth or short term profit are important but are subordinate to the overall wealth maximization objective.

Step-by-Step Solution:

Verification / Alternative check:
Finance literature consistently states that the goal of financial management is to maximize the wealth of the owners, measured by the market value of their shares. This goal is comprehensive because it incorporates profitability, growth, risk management, and long term sustainability. Real world corporate governance structures, such as boards and incentive plans, are also typically built around shareholder value measures, which confirms the central role of this objective.

Why Other Options Are Wrong:
Option A, expanding market share, is an operational goal that may or may not increase shareholder wealth, especially if it requires heavy unprofitable spending. Option C, examining cost reasonableness, is an important control activity but is not a complete strategic objective. Option D suggests that all listed goals have equal priority, which provides no clear direction when trade offs occur. Option E focuses only on current year profit and ignores risk and long term effects, so it can conflict with long term shareholder wealth.

Common Pitfalls:
A common misunderstanding is to equate high accounting profit with high shareholder value, even though aggressive short term profit strategies can destroy long term value. Another pitfall is to focus excessively on growth in sales or assets without checking whether those investments actually create value in present value terms.

Final Answer:
The correct answer is Maximize the current value per share of the existing common stock, because this objective captures the essence of shareholder wealth maximization and provides a clear, market based benchmark for financial management decisions.