A Simple Scoring Model Is Used to Decide Among Three

question 2

Multiple Choice

A simple scoring model is used to decide among three projects that we'll call A,B,and C.The total score for project A is 30,for project B is 20,and for project C is 10.Which of the following statements is BEST?

• A)If project A is successfully completed,it will yield three times the benefits that project C would have provided.
• B)If project C is chosen,the company would benefit only half as much as if they had chosen project B.
• C)Project C is better than project B for this company at this point in time.
• D)Project A is better than project B for this company at this point in time.

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Definitions:

Cash Dividends

Cash distributions from a company to its shareholders, usually derived from earnings.

Treasury Stock

Treasury stock consists of shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, providing insight into the income generated from an investment.

Cash Dividends

Payments made by a corporation to its shareholders, typically from profits, in the form of cash.