The reason why reinvested earnings have a cost equal to the required rate of return is because investors expect to earn on those

A sole proprietorship: Advantage: Single ownership and concentrated decision making authority; Disadvantage: Risk of permanent bankruptcy.
Partnership: Advantage: Shared responsibilities; Disadvantage: Conflicts over financial issues.
Corporation: Advantage: Multiple investors; Disadvantage: Large shares in profit.
Multinational company: Advantage: Large network; Disadvantage: Increased operational costs.

Question

3 years ago

7

funds, what they earn on new projects or purchases of other firms. This is called opportunity costs.True / False.

1 answer:

KatRina [158] · Answer 1 · 2022-08-14T00:19:18+03:00

4 0

Answer:

true the investors expect to earn on those funds