Fisher's separation theorem means that a company can make investment decisions with which:

Question

Quizplus · Accepted Answer

Fisher's separation theorem states that a company's investment decisions can be separated from its financing decisions. According to this theorem, a company can make investment decisions that maximize its profits without considering the preferences of its shareholders. Therefore, every shareholder should agree with the investment decisions made by the company, as they are aimed at maximizing profits of the company, which ultimately benefits the shareholders.

Fisher's Separation Theorem Means That a Company Can Make Investment