When Considering the Risk of Receiving Cash Flows, Financial Managers

question 42

Multiple Choice

When considering the risk of receiving cash flows, financial managers must be aware that:

• A)investors want higher returns for perceived greater risk.
• B)investors want a lower valued firm to discourage future investors which might dilute their existing control.
• C)investors expect dividends and capital gains regardless of the risks associated with achieving them.
• D)investors always want lower returns so that the risk is minimized.

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