Beneficiary Contracts Involve Two Parties to a Contract, Either by Words

question 16

Multiple Choice

beneficiary contracts involve two parties to a contract, either by words, writing, or actions, intending to bring benefits to a third party by virtue of an enforceable contract.

• A) Intended
• B) Incidental
• C) Donee
• D) Creditor

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Definitions:

Required Rate of Return

The minimum annual percentage return on an investment deemed acceptable by an investor or creditor.

Per Share FCFE

Free Cash Flow to Equity per share; a measure of how much cash is available to the equity shareholders of a company on a per share basis.

Required Return

The minimum percentage return an investor expects or requires from an investment to make it worthwhile.

FCFE

Free Cash Flow to Equity, a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt repayment.