The ____ a Project's Variability in Cash Flows, and the ____

question 35

Multiple Choice

The ____ a project's variability in cash flows, and the ____ the positive correlation between the project's cash flow and the MNC's cash flow, the lower the risk of the project.

• A) higher; higher
• B) higher; lower
• C) lower; lower
• D) lower; higher

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Definitions:

Rate of Return

The rate of return is the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Dividends Increase

An action by a company to raise the amount of money paid to shareholders through dividends.

Dividend Growth Rate

The annual percentage increase in a company's dividend payouts.

Required Rate of Return

The minimum percent gain on a yearly basis that captivates entities or persons to invest in a certain security or effort.