Prada Has Nine Million Shares Outstanding, Generates Free Cash Flows

question 51

Multiple Choice

Prada has nine million shares outstanding, generates free cash flows of $40 million each year and has a cost of capital of 10%. It also has $30 million of cash on hand. Prada wants to decide whether to repurchase shares or invest the cash in a project that generates free cash flow of $5 million each year. Should Prada invest or repurchase the shares?

• A)repurchase
• B)indifferent between options
• C)invest
• D)cannot say for sure

Recognize the importance of feedback in communication and how to provide it effectively.

Understand the psychological principles underlying persuasion techniques.

Identify the role of credibility, attractiveness, and expertise in persuasion.

Understand how fear messages and the presentation of arguments influence persuasion.

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Definitions:

Freud's Ideas

Theories proposed by Sigmund Freud that focus on unconscious motives and conflicts, primarily through the lens of psychoanalysis.

Determinist

An advocate or believer in determinism, the philosophical concept that all events, including moral choices, are ultimately determined by causes external to the will.

Sexual Tendencies

Sexual tendencies refer to patterns or orientations of sexual attraction, behavior, and preferences within individuals.

Reinforcement

In operant conditioning, any event that strengthens or increases the likelihood of a behavior occurring again.