For a project such as plant investment, the return that should leave the market price of the firm's stock unchanged is known as the

a. cost of capital.
b. net present value.
c. payback rate.
d. internal rate of return.


A

Business

You might also like to view...

What is the recency effect? When should it be used?

What will be an ideal response?

Business

You are thinking of adding one of two investments to an already well- diversified portfolio

Security A Security B Expected Return = 14% Expected Return = 16% Standard Deviation of Standard Deviation of Returns = 16% Returns = 20% Beta = 1.2 Beta = 1.2 If you are a risk-averse investor, which one is the better choice? A) Security A B) Security B C) Security B, but only if Security B's required return is greater than 12%. D) Either security would be acceptable because they have the same beta.

Business

Sarah aged 59, has been employed by your firm for more than 26 years, and has continually received above-average evaluations. Just before her 27th anniversary with the firm, you are ordered by your superior, the HR Manager, to tell her that her employment with the firm is terminated immediately. Given the facts, as presented, the issues most likely to be raised are:

a. legal b. ethical c. medical d. contract e. none of these

Business

The only difference between a defined-benefit plan and a defined-contribution retirement plan is the tax deduction for the defined-contribution plan

Indicate whether this statement is true or false.

Business