Which of the Following Is NOT a Reason Why a Firm's

question 62

Multiple Choice

Which of the following is NOT a reason why a firm's financial managers must take great care when making investment decisions?

• A) These investment decisions determine whether the firm will add value for its owners.
• B) These investments determine the long-term directions in which the company may move.
• C) These investment decisions determine the corporation's mix of debt and equity.
• D) These investment decisions typically involve substantial costs which must be carefully weighed against their potential benefits.