Question: The financial manager's goal is to maximize current market value of the firm. Could the following actions be consistent with that goal? If yes, how. If no, why?
1. The firm adds a cost-of-living adjustment to the pensions of its retired employees.
2. The firm reduces its dividend payment so it can reinvest more earnings in the business.
3. The firm buys a corporate jet for its executives.
4. The firm drills oil in a remote jungle. The chance of finding oil is only 1 to 5.