An Example of a Share Privatization Issue Would Be

question 63

Multiple Choice

An example of a share privatization issue would be

• A) the public issue of securities representing ownership in the telephone system which is currently owned by the government of a foreign country.
• B) the public issue of securities representing ownership in a firm that is currently privately owned by a foreign citizen.
• C) the private issue of securities representing ownership in a firm that is currently privately owned by a foreign citizen.
• D) none of the above.

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Definitions:

Capital Budgeting

The process of analyzing and ranking potential expenditures or investments that are significant in amount, to determine which projects will provide the best return.

Assigned Value

A valuation determined for an asset or liability, often used in accounting to assign costs or values.

Risk Adjusted NPV

Net Present Value method adjusted for the risk associated with the uncertain cash flows, taking into account the variability of returns and the cost of capital.

Initial Cost

The initial expenditure required to acquire an asset, including the purchase price and any additional costs necessary to get the asset ready for its intended use.