A Policy of Maximizing the Value of the Firm Is

Multiple Choice

A policy of maximizing the value of the firm is the same as a policy of maximizing the shareholders' wealth rests on two important assumptions. They are:
I. the firm can ignore dividend policy
II. the debt equity ratio of the firm does not change
III. an issue of new debt does not affect the market value of existing debt

A) I only
B) II only
C) III only
D) I and III only