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We claim that the goal of the firm is to maximize current market value. Could the following actions be consistent with that goal? No Yes

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We claim that the goal of the firm is to maximize current market value. Could the following actions be consistent with that goal? No Yes a. The firm adds a cost-of-living adjustment to the pensions of is retired employees. The firm reduces its dividend payment, choosing to reinvest more earnings in the business. c. The firm buys a corporate jet for its executives d. The firm drills for oil in a remote jungle. The chance of finding oil is only 1 in 5. Yes Yes

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