Which of the Following Does NOT Always Increase a Company's

question 24

Multiple Choice

Which of the following does NOT always increase a company's market value?

• A)Increasing the expected growth rate of sales.
• B)Increasing the expected operating profitability (NOPAT/Sales).
• C)Decreasing the capital requirements (Capital/Sales).
• D)Decreasing the weighted average cost of capital.
• E)Increasing the expected rate of return on invested capital.

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Definitions:

Bad-News Message

Communication aimed at delivering unfavorable or disappointing information to the recipient in a tactful way.

Indirect Approach

A communication strategy where the main point or message is not immediately presented, used often to soften the delivery of sensitive information.

Negative Messages

Communications that convey refusals, rejections, or other unfavorable information in a careful and considerate manner.

Positive Statement

An affirmation or declaration that is optimistic, constructive, and supportive in tone or content.