Which of the following influences the value of the firm?
I. Investment decisions
II. Dividend decisions
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Which of the following influences the value of the firm? 
I. Investment decisions
II. Dividend decisions
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Quizplus · Accepted Answer

Both investment decisions and dividend decisions can affect the value of the firm. Investment decisions can increase the firm's future cash flows and growth potential, which can lead to a higher valuation. Similarly, dividend decisions can impact the firm's cash position and attractiveness to investors, which can also influence the firm's value.

Which of the Following Influences the Value of the Firm