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Which Three Statements Correctly Relate, According to the Finance Theory

Question 50

Multiple Choice

Which three statements correctly relate, according to the finance theory view, to the maximisation of shareholder wealth?


A) In an efficient market it is equivalent to maximising the share price.
B) It can be ensured by maximising profit- based bonuses for senior management.
C) It is equivalent to maximising the discounted cash flow to shareholders over a long time horizon.
D) It is equivalent to maximising the purchasing power available from a shareholding in a firm.

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