Which of the following does NOT always increase a company's market value?
A)Increasing the expected growth rate of sales.
B)Increasing the expected operating profitability (NOPAT/Sales).
C)Decreasing the capital requirements (Capital/Sales).
D)Decreasing the weighted average cost of capital.
E)Increasing the expected rate of return on invested capital.

Question

Quizplus · Accepted Answer

Increasing the expected growth rate of sales does not always increase a company's market value because it may not lead to higher profitability or efficiency, and could potentially result in higher costs or inefficiencies.

Which of the Following Does NOT Always Increase a Company's