The Financial Manager Should ________

question 63

Multiple Choice

The financial manager should ________.

• A) try to maximize the after-tax payout to the shareholders, for a given payout amount
• B) try to minimize the firm's earnings per share
• C) never pay dividend as a payout policy
• D) only repurchase shares as a payout policy

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Definitions:

Water-Diamond Paradox

A concept in economics that questions why diamonds are more expensive than water despite water being essential for survival and diamonds not.

Marginal Utility

The additional satisfaction or benefit received from consuming one more unit of a good or service.

Marginal Utility

The extra utility or satisfaction that someone attains from the consumption of one more unit of a product or service.

Marginal Utility

The extra pleasure or benefit gained by a consumer from consuming an additional unit of a good or service.