A financial manager makes a choice of the amount and source of capital based on how the choice will impact the ________.
A) revenue
B) face value of bonds
C) depreciation
D) firm value

Question

Quizplus · Accepted Answer

The financial manager's primary goal is to maximize the firm value, so the choice of capital should be made in a way that will positively impact the firm's value. A) Revenue is important, but it is not the sole focus of the financial manager. B) The face value of bonds may be a factor in the decision, but it is not the primary concern. C) Depreciation is an accounting concept and does not directly impact the choice of capital.

A Financial Manager Makes a Choice of the Amount and Source