Question

When financing attractive​ investments, corporate finance officers strive to do all of the following EXCEPT​______

a) Minimize cost of capital
b) Maximize shareholder value
c) Diversify the investment portfolio
d) Maximize short-term profits

Answer 1

Corporate finance officers strive to minimize the cost of capital, maximize shareholder value, and diversify the investment portfolio when financing attractive investments.

Step-by-step explanation:

The corporate finance officers strive to do all of the following except maximizing short-term profits when financing attractive investments:

1. Minimize the cost of capital
2. Maximize shareholder value
3. Diversify the investment portfolio

By minimizing the cost of capital, corporate finance officers aim to reduce the expenses associated with acquiring funds for investments. Maximizing shareholder value is another objective, as it aligns with the goal of maximizing the wealth of the company's owners. Diversifying the investment portfolio helps spread the risk across different assets, reducing the overall risk for the company. However, maximizing short-term profits is not a primary focus, as it may conflict with long-term growth and sustainability.