If N Is a Necessary Condition for an Effect E

question 56

Multiple Choice

If n is a necessary condition for an effect E, and s is a sufficient condition for the same effect, but E does not occur, we can conclude:

• A)s did not occur
• B)n did not occur
• C)neither n nor s occurred
• D)either s or n could have occurred, but not both
• E)nothing about s or n

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Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate them for the risk they undertake by investing their capital.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but kept back to reinvest in the business.

DCF Approach

The Discounted Cash Flow (DCF) approach involves estimating the present value of an investment based on its expected future cash flows, adjusting for the cost of capital.

Cost of Equity

The rate of return a company is expected to pay to its shareholders to compensate them for the risk of investing in the company.