Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
12th Edition
ISBN: 9781259144387
Author: Richard A Brealey, Stewart C Myers, Franklin Allen
Publisher: McGraw-Hill Education
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Question
Chapter 32, Problem 16PS
Summary Introduction
To determine: The kind of option is the carried interest.
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Students have asked these similar questions
Why an outstanding weakness of a limited partnership interest as an investment is its lack of liquidity or marketability?
Which one of the following is not an advantage of partnership?
a.
Less profit because profit is shared
b.
Increased capital
c.
Increased knowledge and specialist skills
d.
Shared risk
Why must real options have positive value?
(Select all the choices that apply.)
A.
Having the real option but not the obligation to act is valuable.
B.
Real options must have positive value because they can always be sold to recover the initial investment.
C.
Real options must have positive value because they are only exercised when doing so would increase the value of the investment.
D.
If exercising the real option would reduce value, managers can allow the option to go unexercised.
Chapter 32 Solutions
Principles of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
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