Financial managers can take a variety of actions to influence the market value of a company's stock. All of the following are classifications of actions taken EXCEPT _____ decisions.
A) investing
B) financing
C) dividend
D) tax implication

Question

Quizplus · Accepted Answer

Tax implications are not typically considered as a classification of actions that can directly influence the market value of a company's stock. Investing decisions, such as capital expenditures or strategic acquisitions, can impact future earnings and growth prospects and therefore have an effect on stock value. Financing decisions, such as issuing debt or equity, can change a company's capital structure and impact the risk profile of the firm. Dividend decisions, such as increasing or decreasing dividend payouts, can signal to investors the financial health and future prospects of the company.

Financial Managers Can Take a Variety of Actions to Influence