Which Method Directly Estimates the Change in Shareholder Wealth

question 47

Multiple Choice

Which method directly estimates the change in shareholder wealth?

• A) Payback
• B) IRR
• C) NPV
• D) PI

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Definitions:

Incidental Beneficiary

A third party for whose benefit a contract was not made but who would substantially benefit if the agreement were performed according to its terms and conditions.

Enforceable Legal Rights

are rights granted by the law that can be brought before a court for protection or enforcement.

Donee Beneficiary

A third-party beneficiary for whom a contract is intentionally made to benefit as a gift.

Constructive Breach

A type of breach of contract where one party indirectly fails to perform their obligations, thereby allowing the other party to treat the contract as broken.