1. Striving to maximize value is considered the most theoretically correct objective for a financial manager to pursue. The reasons for this include the fact that the pursuit of this objective can efficiently include the measurement of the risk taken in financial decisions, and the consideration of the time value of money.
True or False
2. An increasing Debt/Equity ratio suggests that the firm is reducing risk by issuing additional equity financing such as Common Stock.
True or False
3. Interest payments paid to common stockholders are more tax beneficial to a corporation than are payments to creditors.
True or False