Which of the Following Is Not a True Statement About

question 61

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 these.

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Definitions:

Investment

The allocation of resources, usually money, to generate income or profit, including purchasing assets or securities.

Compounded Continuously

Compounded continuously refers to the mathematical limit that compound interest can reach if it is calculated and added to the principal balance continuously, leading to exponential growth.

Future Value

A prediction of what a current asset will be worth at a particular future date, using an assumed growth rate.

Discount Rate

The discount rate, in finance, is the interest rate used to determine the present value of future cash flows, influencing the attractiveness of investments.