The reason why maximizing share value and maximizing EPS do not give the same optimal capital structure is because ________.
A) EPS maximization does not consider risk
B) share value maximization does not consider risk
C) EPS maximization considers cash flows
D) EPS maximization does consider risk
A) EPS maximization does not consider risk
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Give an example of an adaptive challenge.
What will be an ideal response?
This individual monitors follower performance and takes corrective action when deviations from standards occur.
A. A passive management-by-exception leader B. An active management-by-exception leader C. A laissez-faire leader D. A contingent reward leader
Interest rate risk results from the fact that
A) bond prices are negatively related to interest rates. B) bond prices are positively related to interest rates. C) corporations may default. D) tax rates on interest income can change.
You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange. This trade took place in the
A) over-the-counter market. B) NYSE. C) AMEX. D) primary market. E) none of the above.