Let’s assume Adidas made $2.1 billion in profits in 2023-23. Rather than distributing profits in the form of dividends to shareholders, the organization decides to save the profits for later use. This represents an example of which of the following?

A debenture is a corporate bond that has no assets to secure it (i.e., to guarantee repayment).

The athletic department at Big State University is considering two different facility renovation projects on their campus, both with 5 year life expectancies. Utilizing the payback period approach, determine the payback period and the correct recommendation for what the athletic department should decide regarding the potential renovation project. Project A Project B Year Cash Flow Cash Flow 0 ($750,000) ($400,000) 1 $200,000 $50,000 2 175,000 60,000 3 200,000 75,000 4 60,000 175,000 5 50,000 150,000

The primary expense across NCAA Division I FBS and FCS athletic departments

The New Orleans Pelicans need to decide whether the organization should take on a renovation project for their training complex. According to the net present value (NPV) capital budgeting approach, what should the organization do assuming a cost of capital of 9% and the following projected cash flows?

The primary expense across NCAA Division I FBS and FCS athletic departments

Which professional sports league has utilized an internal low-interest loan program to finance its stadiums? 

What is the minimum tax-exempt bond yield needed if your tax rate is 35% and you are considering a taxable-bond with a 3.125% return?

A debenture is a corporate bond that has no assets to secure it (i.e., to guarantee repayment).

With regard to financing through stock, which of the following is true?