Multiple Select QuestionSelect all that applyA good financial decision will do which of the following?Multiple select question.Increase the value of the firm's existing stockIncrease market value of shareholders' equityIncrease the cost of capitalIncrease current dividends per share

A good financial decision will:

1. Increase the value of the firm's existing stock: This is true. A good financial decision should aim to increase the value of the firm's existing stock. This is because the value of a firm's stock is a reflection of its financial health and profitability. If a decision leads to increased profits or improved financial health, it will likely lead to an increase in the stock's value.

2. Increase market value of shareholders' equity: This is also true. Shareholders' equity represents the net value of a company, or how much it would be worth if it decided to sell all its assets and pay off all its debts. A good financial decision should increase this value, as it indicates that the company is growing and becoming more valuable.

3. Increase the cost of capital: This is not true. The cost of capital is the return a company needs to provide to its investors to attract investment. A higher cost of capital means that a company needs to generate more profits to satisfy its investors, which can be difficult. Therefore, a good financial decision should aim to decrease, not increase, the cost of capital.

4. Increase current dividends per share: This can be true, but it's not always the case. While increasing dividends can be a sign of a company's financial health and profitability, it's not always a good financial decision. This is because dividends are paid out of a company's profits, and increasing them can reduce the amount of money available for other investments. Therefore, a good financial decision should balance the need to reward shareholders with the need to invest in the company's future.