Maximizing owners' equity value means carefully considering all of the following EXCEPT
A) how to best bring additional funds into the firm.
B) which projects to invest in.
C) how best to increase the firm's risk.
D) how best to return the profits from those projects to the owners over time.

Question

Quizplus · Accepted Answer

Increasing a firm's risk without a corresponding increase in expected returns does not necessarily maximize owners' equity value. The goal is to manage and balance risk in a way that enhances value, not to increase risk for its own sake.

Maximizing Owners' Equity Value Means Carefully Considering All of the Following