Which of the Following Is Not a True Statement About

question 27

Multiple Choice

Which of the following is not a true statement about the goal of maximizing shareholder wealth?

• A) It takes into account the timing of cash-flows.
• B) It is a short-run point of view which takes risk into account.
• C) It considers risk as a factor.
• D) None of the other answers are correct.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.

EPS Growth Rate

Refers to the rate at which a company's earnings per share (EPS) has grown over a specific period, usually annually, indicating the company's profitability growth.

Rate of Return

The increase or decrease in the value of an investment throughout a certain period, represented as a fraction of the original investment's price.