Which One of the Following Actions Best Meets the Goal

question 102

Multiple Choice

Which one of the following actions best meets the goal of financial management?

• A) Deciding a firm should be 100% equity financed.
• B) Delaying cash payments to increase the total cash on hand.
• C) Easing the accounts receivable policies to increase current sales.
• D) Accepting a project that enhances the current market value of the firm's stock.
• E) Issuing additional shares of stock to increase the total cash on hand.

---

Definitions:

Income

Money received, especially on a regular basis, from work, property, or investments.

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods or outcomes.

Consumption

The process of using goods and services to satisfy wants and needs.

Interest Rate

An interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan remaining.