Force Majeure Clauses

question 5

Multiple Choice

Force majeure clauses:

• A)are liquidated damages clauses.
• B)are void.
• C)serve to shift the risk of unforeseen events.
• D)none of the above

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value.

Stock Value

The current price at which a share of a company's stock can be bought or sold. It is determined by the market and can fluctuate based on demand and supply.

Present Value

The today's worth of future monetary sum or continuous cash flows, considering a defined interest rate.

Dividend Yield

Dividend yield is the ratio of a company’s annual dividends compared to its share price, indicating how much shareholders earn in dividends relative to the share price.