1-14 (book/static) Question Help You are a financial manager in a public corporation. One of your engineers says that they can increase the profit margin on your flagship product by using a lower vendor. However, the product is likely to fail more often and will generally not last as long will taking your engineer's suggestion necessarily make shareholdersbe off? Why or why not? Will taking your engineer's suggestion necessarily make shareholders better of? Why or why not? (Select the best answer below.) O A. No, it will not necessarily make the shareholders better off. Even though you are reducing costs, which could increase cash flows in the long-term, you will deal with more costly warrant issues and with lost reputation with your customers, potentially leading them to buy from your competitors which would redus cash-flows in the short-term. Making a less expensive, but lower quality product is not the same as maximizing the value of the shares making your shareholders better off). OB. No, it will not necessarily make the shareholders better off. Even though you are increasing costs, which could decrease cash flows in the short-term, you will deal with more costly warrant issues and with lost reputation with your customers, potentially leading them to buy from your competitors, which would increase cash flows in the long-run. Making a more expensive, but lower quality product is not the same as maximizing the value of the shares (making you shareholders better off) OC. No, it will not necessarily make the shareholders better off. Even though you are reducing costs, which could decrease cash flows in the short-term, you will deal with more costly warrant issues and with lost reputation with your customers, potentially leading them to buy from your competitors, which would reduc cash flows in the long-run Making a loss expensive, but higher quality product is not the same as minimizing the value of the shares making your shareholders better off). Click to select your answer and then click Check Answer. Clear All All parts showing