Maximizing owners' equity value means carefully considering all of the following except _______.
A) How to best bring additional funds into the firm
B) Which projects to invest in
C) How best to increase the firm's risk
D) How best to return the profits from those projects to the owners over time

Question

Quizplus · Accepted Answer

Increasing the firm's risk does not necessarily lead to maximizing owners' equity value. In fact, excessive risk-taking can lead to negative financial outcomes for the firm and its owners. Therefore, carefully considering how best to manage the firm's risk, rather than simply increasing it, is a more appropriate strategy for maximizing owners' equity value.

Maximizing Owners' Equity Value Means Carefully Considering All of the Following