Is it important to evaluate all financial decisions by measuring how they affect a firm’s stock price, hence ensuring maximization of shareholder wealth.

Yes, it is important for firms to evaluate their financial decisions by measuring how they affect stock price as this can help ensure that shareholder wealth is maximized over time. By doing so, organisations can make more informed choices when selecting investments or taking on other obligations thus increasing chances of achieving positive returns in the long run.

Additionally, examining stock prices also helps provide an indication of a company’s overall performance which in turn gives investors greater insight into where their money is going & whether or not further adjustments/changes need to be made in order to improve results.

In conclusion, evaluating all financial decisions based on their impact on stock prices is essential as it allows organisations to make better use of available resources whilst keeping stakeholders informed about progress being made thereby helping them reach their desired goals sooner rather than later.