PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 32, Problem 8PS
Summary Introduction
To determine: The kind of option is the carried interest.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
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
PRIN.OF CORPORATE FINANCE
Knowledge Booster
Similar questions
- Do bond prices and interest rates have any link to one another? Explain how this partnership came to be in your own words. a. When estimating the value of a bond, how can we utilize this connection to help us?arrow_forwardWhat are some ways to limit the potential downsides of a strategic alliance? Group of answer choices Don’t do any strategic alliances to avoid the downsides. Rigorous contracting that addresses the potential for holdup, appropriability, moral hazard issues; also doing due diligence. Try to induce your partner to make transaction specific investments so that you can hold them up.arrow_forwardWhat types of clients are ideally suited for Opportunity Zone investing? What types of clients are not ideally suited for Opportunity Zone investing?arrow_forward
- what will you suggest to a relative, to invest in a low risk outlet such as the money market or to a high risk outlet such as equity?arrow_forwardIn your opinion, what is the most compelling justification for a forward stock split?arrow_forwardHow does the risk associated with investment in a partnership differ for the general partner versus a limited partner?arrow_forward
- Joint ventures partners do not act in common ?? How ?arrow_forwardInvestment in any of the alternatives depends on the needs and requirements of the investor. What are those avenues (alternatives)?arrow_forwardWhat does it mean to say that an investor is risk-averse? Select one: a. The greater the return from an investment, the greater the risk demanded by the investor. b. The investor would invest in government bonds but would never invest in the share market. c. The investor will avoid risk at all costs. d. None of the above. Clear my choicearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning- Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:CengagePrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College