Maximizing Shareholder Wealth by Investing in Accounts Receivables Is Considered

Multiple Choice

Maximizing shareholder wealth by investing in accounts receivables is considered when ____.
I. marginal costs are exceeded by marginal returns.
II. the cost of the funds invested are exceeded by expected marginal returns.

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.