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:

Devalue Currencies

The intentional decrease in the value of a country's currency compared to other currencies, typically conducted by the government or central bank to adjust the country's trade balance.

Foreign Investment

Capital investment made by one country into another, either by buying a company in the target country or by expanding operations of an existing business.

Revenue Tariff

A tax imposed on imported goods primarily for generating government revenue rather than protecting domestic industries.

Generate Income

The process of creating revenue or earnings through various sources such as work, investments, or business activities.