3.Mr. Wise Sapi invested 50M in the common shares of Profitable Ventures, Inc. What if the guaranteed return for this investment is 5M and prior to the issuance of dividends, the management decided to...


3.Mr. Wise Sapi invested 50M in the common shares of Profitable Ventures, Inc. What if the guaranteed return for this investment is 5M and prior to the issuance of dividends, the management decided to retain all earnings. What will make Mr. Sapi happy? (the tenor must be in the context of investment)


A. If his increased capitalization will allow him to extract returns higher than the prevailing market rate


B. If his increased capitalization will allow him to extract returns equal to the prevailing market rate


C. If his increased capitalization will allow him to extract returns lower than the prevailing market rate


D. If he will receive 5M as dividends



Jun 02, 2022
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