Managers of a firm can increase the value of a firm by
A) increasing the size of the cash inflows.
B) reducing the riskiness of the cash flows.
C) speeding up the timing of the cash flows.
D) all of the above will increase the value of the firm.

Question

Quizplus · Accepted Answer

Increasing the size of cash inflows through increased revenue, reducing the riskiness of cash flows through diversification or hedging, and speeding up the timing of cash flows through improved working capital management all have a positive impact on the value of the firm. Therefore, all of these options will increase the value of the firm.

Managers of a Firm Can Increase the Value of a Firm