An Implied-In-Fact Condition and Constructive Condition Are the Same

question 65

True/False

An implied-in-fact condition and constructive condition are the same.

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Definitions:

Target Capital Structure

The ideal mix of debt, equity, and other financing sources a company aims to maintain over time.

Invested Funds

Money allocated by individuals or organizations to stocks, bonds, or other investments with the expectation of earning a return.

Target Structure

An ideal capital structure a company aims to achieve, usually a mix of debt and equity that minimizes cost of capital while maximizing valuation.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted and includes all types of capital such as debt and equity.