Financial managers primarily create firm value by:
A)maximizing current dividends.
B)investing in assets that generate cash in excess of their cost.
C)lowering the earnings per share.
D)increasing the firm's market share.
E)maximizing current sales.

Question

Quizplus · Accepted Answer

Financial managers create firm value by investing in assets that generate cash flows in excess of their cost. This involves making strategic decisions about the allocation of funds to different projects or investments. Maximizing current dividends, lowering earnings per share, increasing market share, or maximizing current sales may not always be in the best interest of the firm's long-term financial health and may not necessarily lead to value creation.

Financial Managers Primarily Create Firm Value By