In Terms of the Decision of What to Do with Extra

question 56

Multiple Choice

In terms of the decision of what to do with extra cash, the firm's managers should undertake projects only if:

• A) the firm never pays a dividend.
• B) the expected return on the project is greater than that of an asset of similar risk.
• C) the expected return on the project is less than that of an asset of similar risk.
• D) the expected return on the project is equal to that of an asset of similar risk.

---

Definitions:

Expedited Credit

A banking service that provides faster funds availability to the depositor.

Substitute Check

A digital reproduction of an original check that has the same legal standing for purposes of clearing.

Consumer

Someone who buys or leases real estate, goods, or services for personal, family, or household purposes.

Good Faith

A principle emphasizing honesty and sincerity in dealings, particularly in legal contracts or negotiations, without any intention to deceive or commit fraud.