If an Investor Buys "A" Proportion of an Unlevered Firm's

question 8

Multiple Choice

If an investor buys "a" proportion of an unlevered firm's (firm U) equity then his/her payoff is:

• A) (a) * (profits)
• B) (a) * (interest)
• C) (a) * (profits - interest)
• D) none of the above

---

Definitions:

Foreign Intelligence Surveillance Act

A U.S. law that establishes procedures for the surveillance and collection of foreign intelligence information between foreign powers and agents of foreign powers suspected of espionage or terrorism.

Surveillance

The monitoring of behavior, activities, or information for the purpose of information gathering, influencing, managing, or directing.

Terrorists

Individuals or groups that use violence and intimidation, especially against civilians, in the pursuit of political aims.

Reasonable Expectation of Privacy

A legal standard that determines whether a person's privacy has been violated in a manner that society is prepared to recognize as reasonable.