Cripple Creek Funds (CCF)is Exploring an Opportunity to Make a $10

question 64

Multiple Choice

Cripple Creek Funds (CCF) is exploring an opportunity to make a $10 million investment to help a small technology firm to expand to a value of $75 million over the next three years. What ownership fraction must CCF get in order to meet its required return of 50%?

• A)45%
• B)59%
• C)68%
• D)75%
• E)82%

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Definitions:

International Trade

The exchange of goods, services, and capital across international borders or territories.

Monetary System

The set of mechanisms and institutions that provide a country with its currency and manage its supply and value.

Trade Deficit

The economic condition that occurs when a country imports more goods and services than it exports.