A Manager Should Attempt to Maximize the Value of the Firm

Multiple Choice

A manager should attempt to maximize the value of the firm by:

A) changing the capital structure if and only if the value of the firm increases.
B) changing the capital structure if and only if the value of the firm increases to the benefit of inside management.
C) changing the capital structure if and only if the value of the firm increases only to the benefits of the debtholders.
D) changing the capital structure if and only if the value of the firm increases although it decreases the stockholders' value.
E) changing the capital structure if and only if the value of the firm increases and stockholder wealth is constant.