The correct answer is: B. maximize the value of the firm’s common stock.
The long-run objective of financial management is to maximize the value of the firm’s common stock. This is because the value of the firm’s common stock is a measure of the firm’s overall performance and is the best indicator of the firm’s ability to create wealth for its shareholders.
Option A, maximize earnings per share, is not the correct answer because earnings per share is a measure of the firm’s profitability, not its value. A firm can have high earnings per share but still have a low stock price if its stock is undervalued by the market.
Option C, maximize return on investment, is not the correct answer because return on investment is a measure of the firm’s efficiency, not its value. A firm can have a high return on investment but still have a low stock price if its stock is undervalued by the market.
Option D, maximize market share, is not the correct answer because market share is a measure of the firm’s size, not its value. A firm can have a large market share but still have a low stock price if its stock is undervalued by the market.