Growth can be reconciled with the goal of maximizing firm value:
A)because greater growth always adds to value.
B)because growth of any type cannot decrease value.
C)because growth and wealth maximization are the same.
D)because growth must be an outcome of decisions that maximize NPV.
E)None of the above.

Question

Quizplus · Accepted Answer

Growth can be reconciled with the goal of maximizing firm value by ensuring that growth is an outcome of decisions that maximize net present value (NPV). By focusing on maximizing NPV, a firm can ensure that the costs and benefits of growth are carefully considered and that growth only occurs when it adds value to the firm. This approach ensures that growth is aligned with the goal of maximizing firm value.

Growth Can Be Reconciled with the Goal of Maximizing Firm