Which of the Following Are NOT Ways Risk Management Can

Multiple Choice

Which of the following are NOT ways risk management can be used to increase the value of a firm?

A) Risk management can increase debt capacity.
B) Risk management can help a firm maintain its optimal capital budget.
C) Risk management can reduce the expected costs of financial distress.
D) Risk management can help firms minimize taxes.
E) Risk management can allow managers to defer receipt of their bonuses and thus postpone tax payments.