Which of the following will usually increase shareholders’ wealth?

The managers of a company are agents for the shareholders tasked with increasing shareholders’ wealth.

Which of the following will usually increase shareholders’ wealth?
A . Investing in projects with the shortest payback period.
B . Investing in projects with positive net present value.
C . Investing in projects with the greatest level of risk.
D . Not paying a dividend for several years in order to invest in new projects.

View Answer

Answer: B