A firm's financing activities have two primary objectives:

Question

Quizplus · Accepted Answer

The primary objectives of a firm's financing activities are access to capital markets, which can provide necessary funds for projects and expansion, and keeping the cost of capital as low as possible to maximize profits. option B is not the best answer because a firm may not always be able to raise as much capital as possible and may need to balance between the need for funds and the cost of borrowing. Option C is not accurate because a firm may not always fund all of its projects and prioritize them based on profitability. Option D is also not the best answer because a firm may need to borrow to fund profitable projects and may prioritize maximizing profits over minimizing borrowing.

A Firm's Financing Activities Have Two Primary Objectives