Financial managers can create value through ﬁnancing decisions that:
A)reduce costs or increase subsidies.
B)increase the product prices.
C)creating a new security.
D)Both A and B.
E)Both A and C.

Question

Quizplus · Accepted Answer

Financial managers can create value through financing decisions that reduce costs or increase subsidies (Option A) and creating a new security (Option C). Increasing product prices (Option B) is not always a viable option and may lead to a decrease in demand, resulting in a loss of value for the company. Therefore, options A and C are more effective in creating value for the company. Hence, option E is the best choice.

Financial Managers Can Create Value Through ﬁNancing Decisions That