A financial manager makes a choice of the amount and source of capital based on how the choice will impact:
A)debt-equity ratio.
B)debt value.
C)earnings per share.
D)firm value.
E)profit.

Question

Quizplus · Accepted Answer

The financial manager's primary goal should be to maximize the firm's value, as it ultimately benefits the shareholders. Therefore, the choice of the amount and source of capital should be based on how it will impact the firm's value.

A Financial Manager Makes a Choice of the Amount and Source