Business, 17.04.2020 19:48 kseniyayakimov

1. Read the following passage and choose the appropriate option to complete the sentences.
Shareholders want managers to maximize the of their investments. The firm faces a trade-off. Either it can invest its cash in or it can give the cash back in the form of a(n) and they can invest it in . Shareholders want the company to invest in only if the is than they could earn for themselves in equivalent risk investments. The return that shareholders could earn for themselves is therefore the for the firm.
Options:
a. real assets
b. dividend
c. market value
d. financial assets
e. higher
f. shareholders
g. expected return
h. opportunity cost of capital

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