BACK TOR ASSIgmment

Attempts $$ Keep the Highest $/1$

$4.$ Free cash flow and financial statements

The primary objective of the corporate management team is to maximize shareholder wealth. The company's board of directors and the share evaluate and review managerial actions based on the growth in the value of the firm.

Based on your understanding of what determines a firm's value, review the following:

What does the value of a firm depend on$?$

Option A The ability to generate cash flow that is available to distribute to the company's investors, including creditors and stockholders

Option B The ability to generate cash flow that is available to distribute to the company's stockholders only

Which of the options is most accurate?

Ontion R