Capital investments require balancing risk and return. Managers have a responsibility to ensure that the investments that
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Capital investments require balancing risk and return. Managers have a responsibility to ensure that the investments that they make in their own firms increase shareholder value. Managers have met that responsibility if the return on the capital investment:
Exceeds the rate of return associated with the firm’s beta factor.
Is less than the rate of return associated with the firm’s beta factor.
Is greater than the prime rate of return.
Is less than the prime rate of return
Related Book For
Business and society ethics and stakeholder management
ISBN: 978-0324569391
7th Edition
Authors: Archie B. Carroll, Ann K. Buchholtz
Posted Date: