Which of the Following Statements Is True

question 15

Multiple Choice

Which of the following statements is true?

• A) Greenfield ventures are risky.
• B) Greenfield venture are more risky than acquisitions.
• C) There is a possibility of a greenfield venture being pre-empted by more aggressive global competitors.
• D) Greenfield ventures are slow to establish.
• E) Greenfield ventures are more profitable.

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Definitions:

Preferred Shareholders

Investors who own preferred shares in a company, which often grant them priority over common shareholders in dividend payments and asset liquidation.

Dividend Growth Model

The dividend growth model is a valuation method used to estimate the price of a company's stock based on the assumption that dividends will increase at a steady rate indefinitely.

Rate of Growth

The percentage growth in the magnitude or worth of an item during a particular timeframe.

Required Rate of Return

The lowest annual yield necessary to draw individuals or firms towards investing in a specific venture or financial proposition.