We claim that the goal of the firm is to maximize current market value. Could the following

Question:

We claim that the goal of the firm is to maximize current market value. Could the following actions be consistent with that goal?
a. The firm adds a cost-of-living adjustment to the pensions of its retired employees.
b. The firm reduces its 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.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...