Growth can be reconciled with the goal of maximizing firm value:
A. because greater growth always adds to value.
B. because growth must be an outcome of decisions that maximize NPV.
C. because growth and wealth maximization are the same.
D. because growth of any type cannot decrease value.
E. None of the above.
Ans: B. because growth must be an outcome of decisions that maximize NPV.
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Which of the following statements concerning compensating balance agreements is not true?
A) They always reduce the amount of cash available to the borrower. B) They always involve legal restrictions on the cash received. C) They always increase the effective interest rate to the borrower. D) They must be disclosed in the financial statements' footnotes.
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Indicate whether the statement is true or false