Financial managers can create value through financing decisions that:
A) reduce costs or increase subsidies.
B) increase the product prices.
C) create a new security.
D) Both reduce costs or increase subsidies; and increase the product prices.
E) Both reduce costs or increase subsidies; and create a new security.

Question

Quizplus · Accepted Answer

Financial managers can create value by reducing costs or increasing subsidies, which directly impacts the bottom line, and by creating new securities, which can optimize the capital structure and potentially lower the cost of capital.

Financial Managers Can Create Value Through Financing Decisions That