What Is Another Term for the Required Rate of Return

question 144

Multiple Choice

What is another term for the required rate of return when using the net present value model?

• A)the huddle rate
• B)the maximum acceptable rate of return
• C)the payback rate
• D)the discount rate

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Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or retained rather than being paid out as dividends to shareholders, often used for reinvestment in the business, debt reduction, or to bolster the balance sheet.

Total Stockholders' Equity

The total amount of capital that shareholders have invested in a company, including retained earnings and contributed surplus.

Dividends Declared

Profits announced by a company's board of directors to be distributed among shareholders, typically in the form of cash or additional shares.

Tuskegee Study

A notorious and unethical syphilis study conducted on African American men in Tuskegee, Alabama, without informed consent.