Use the Information for the Question(s) Below

question 6

Multiple Choice

Use the information for the question(s) below.
An independent Canadian film maker is considering producing a new movie. The initial cost for making this movie will be $20 million today. Once the movie is completed, in one year, the movie will be sold to a major studio for $25 million. Rather than paying the $20 million investment entirely using its own cash, the film maker is considering raising additional funds by issuing a security that will pay investors $11 million in one year. Suppose the risk-free rate of interest is 10%.
-What is the NPV of this project if the film maker does not issue the new security? What is the NPV if the film maker issues the new security?

• A) $1.7 million; $1.7 million
• B) $1.7 million; $2.7 million
• C) $2.7 million; $1.7 million
• D) $2.7 million; $2.7 million

Comprehend the dimensions of diversity and their impact on workplace values, expectations, and behaviors.

Identify barriers to career growth for women and minority groups within organizational culture.

Understand the role and importance of awareness training in recognizing and responding to cultural differences in the workplace.

Grasp the legal and ethical considerations in managing employee dependencies and related workplace discrimination.

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Definitions:

De Jure Corporation

a corporation that is legally established and operating in accordance with the law.

Common Stock

Corporate stock that does not convey any preference to its holders.

Preferred Stock

Stock that conveys preferences to its holder with respect to assets and dividends.

Subscribers

Individuals or entities that agree to receive and often pay for a service or product regularly.