The text focuses on enterprise value rather than shareholder value primarily because:
A)The text is mainly concerned with generating value from how a firm is managed, not from how it is financed
B)They are theoretically different but in practice they are the same
C)The distinction between Debt and Equity is not always easy, and is not the focus of the text.
D)Both a and c

Question

Quizplus · Accepted Answer

The text is primarily concerned with generating value from how a firm is managed, which is why it focuses on enterprise value rather than shareholder value. Additionally, the distinction between Debt and Equity is not always easy, and is not the primary focus of the text. Therefore, choices A and C are both correct.

The Text Focuses on Enterprise Value Rather Than Shareholder Value