Whether an Eruption Will Produce Lava Flows or Pyroclastic Debris

question 35

Multiple Choice

Whether an eruption will produce lava flows or pyroclastic debris depends on the viscosity of magma and the _______

• A) elevation of the volcano
• B) age of the magma
• C) proportion of volatiles within the magma
• D) depth of the magma chamber

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Definitions:

Target Capital Structure

The optimal mix of debt, equity, and other financing sources that a company aims to achieve to minimize cost of capital and maximize shareholder value.

Optimal Structure

The ideal mix of debt, equity, and internal funds that minimizes the cost of capital while maximizing shareholder value.

IRR

Internal Rate of Return, a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Cost Of Capital

The minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital.