Which of the Following Is an Advantage of Using a Form

question 14

Multiple Choice

Which of the following is an advantage of using a form of ADR?

• A) can be resolved quicker than through litigation
• B) more time consuming than litigation
• C) more expensive than litigation
• D) can be appealed to a Judge

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Definitions:

Perpetuity Rate of Return

The rate at which an infinite series of cash flows, received indefinitely, is discounted to equate its present value.

Stated Dividend

The amount of dividend that a company declares to be paid out to its shareholders, usually expressed as a fixed amount per share.

Cost of Capital

The yield a corporation needs to generate on its investments in order to preserve its market value and draw in financing.

Internal Rate of Return

The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, used to evaluate the profitability of potential investments.