A Group of Individuals Got Together and Purchased All of the Outstanding

question 8

Multiple Choice

A group of individuals got together and purchased all of the outstanding shares of common stock of DL Smith,Inc.What is the return that these individuals require on this investment called?

• A)dividend yield
• B)cost of equity
• C)capital gains yield
• D)cost of capital
• E)income return

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Definitions:

Facilitation Payments

Small payments made to expedite or facilitate routine government actions, often seen in a gray area between legitimate fees and bribery.

Obtain

To acquire or get possession of something through a purchase, effort, or request.

Retain

To keep or continue holding, possessing, or maintaining something or someone.

Ethical Issue

A situation or problem that requires an individual or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).