iple Choices
Answer (Choose 1 answer)
Which one of the following is a criticism of equating the goals of maximizing the ROE of a firm and maximizing the firm's shareholder wealth?
A. All of the others are criticisms of ROE as a goal.
B. ROE ignores the size of the initial investment as well as future cash flows.
OD C. ROE does not consider risk.
D. ROE is based on after-tax earnings, not cash flows.
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