Andre Is Considering an Investment in Pollard's Inc

question 88

Multiple Choice

Andre is considering an investment in Pollard's Inc. and has gathered the following information. What is the expected standard deviation for a share of the firm's stock?

• A) 17.48%
• B) 122.63%
• C) 20.13%
• D) 5.14%

Identify the concept and legal implications of different types of contracts.

Recognize the concept of promissory estoppel and its application.

Appreciate the principles underlying the formation of contracts including offer, acceptance, and consideration.

Describe the various elements involved in establishing a contract's legality, capacity, and obligation.

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Definitions:

External Growth

Expansion of a company's operations through acquisitions, mergers, or partnerships, rather than through organic growth.

Avoid Paying Dividends

Strategies employed by companies to retain earnings instead of distributing them to shareholders as dividends, often to reinvest in the business or improve balance sheet health.

Poison Pills

A defensive strategy used by companies to prevent or discourage unwanted takeover bids by making the company less attractive to the potential acquirer.

White Knights

Friendly investors or companies that rescue a target company from a hostile takeover by purchasing a significant stake in the company.