If a Firm Generates a Rate of Return on __________________________________________________

question 60

Short Answer

If a firm generates a rate of return on __________________________________________________ equal to the discount rate used by the investor then it does not matter if an analyst uses cash flows to the investor or cash flows to the firm.

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Definitions:

Liver

A vital organ in vertebrates and some other animals that perform a wide range of functions including detoxification, protein synthesis, and production of biochemicals necessary for digestion.

Heart

Muscular organ whose contraction causes blood to circulate in the body of an animal.

Elastic

The ability of an object or material to resume its normal shape after being stretched or compressed, a characteristic of materials like rubber.

Oxytocin

Hormone, released by the posterior pituitary, that causes contraction of the uterus and milk letdown.