The Following Are Ways to Increase Shareholder Value Except

question 6

Multiple Choice

the following are ways to increase shareholder value except:

• A) Invest in products that are low risk
• B) Reduce the cost of capital by increasing debt to equity ratio
• C) Earn more profit by reducing costs
• D) Use less capital
• E) Increase revenue without using more capital

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials, labor, and overhead costs.

Direct Materials

Raw materials that are directly traceable to the production of specific goods or services.

Raw Materials

Basic materials that are used in the manufacturing process to produce goods or finished products.

Product Costs

The costs directly associated with the creation of a product, including direct materials, direct labor, and manufacturing overhead.