Answer: b. Because they have been hired to represent the interests of the current shareholders
Explanation:
Financial managers are meant to always try to maximise the stock of a company because doing so will increase the wealth of the current shareholders who are the owners of the company.
The managers owe this duty to the shareholders because they were hired to represent and pursue the interests of these shareholders. This sometime raises a conflict known as the Agency conflict because the managers might try to represent their own interests instead.
