Multiple Choice
Which of the following statements regarding value additivity is FALSE?
A) The value of a portfolio is equal to the sum of the values of its parts.
B) The price or value of the entire firm is equal to the sum of the values of all projects and investments within the firm.
C) To maximize the value of the entire firm,managers should make decisions that maximize NPV.
D) Value additivity does not have important consequences for the value of the entire firm,only on portfolios of firms.
Correct Answer:
Verified
Correct Answer:
Verified
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