Which of the following does NOT always increase a company's market value?

Question

Quizplus · Accepted Answer

Although increasing the expected growth rate of sales may lead to an increase in market value in most cases, it is not a guaranteed outcome. The market may become skeptical of the company's ability to sustain such growth or may react negatively to the company taking excessive risks to achieve growth. The other options listed, such as increasing operating profitability, decreasing capital requirements, decreasing the weighted average cost of capital, and increasing expected rate of return on invested capital, typically lead to an increase in market value.

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