Fill in the blanks in the following passage by choosing the most appropriate term from the following
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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 to in the form of a _______ and they can invest it in _______. Shareholders want the company to invest in _______ only if the _______ is_______ than they could earn for themselves. The return that shareholders could earn for themselves is therefore the _______for the firm.
Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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