Which one of the following actions best meets the goal of ﬁnancial management?
A) Deciding a ﬁrm should be 100% equity ﬁnanced.
B) Delaying cash payments in order to increase the total cash on hand.
C) Easing the accounts receivable policies in order to increase current sales.
D) Accepting a project that enhances the current market value of the ﬁrm's stock.
E) Issuing additional shares of stock to increase the total cash on hand.

Question

Quizplus · Accepted Answer

Accepting a project that enhances the current market value of the firm's stock is the best choice as it aligns with the goal of maximizing shareholder wealth. The other choices may have short-term benefits but could harm the firm's financial health in the long run.

Which One of the Following Actions Best Meets the Goal