In Its Decision in the Case of Fletcher V

question 41

Multiple Choice

In its decision in the case of Fletcher v. Peck, the U.S. Supreme Court:

• A) exercised the authority to overturn a state law that the Court considered in violation of the U.S. Constitution.
• B) declared that corruption involved in the making of a law automatically invalidated that law.
• C) held that slaves who ran away from their masters had to be returned to them, even if the slaves had gone to a free state.
• D) asserted that political parties were constitutional even though they were not mentioned in the 1787 document.
• E) said that the purchase of land from a foreign power, as in the case of Louisiana, was constitutional.

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from a country's central bank's discount window; also the rate used to discount future cash flows in discounted cash flow analysis.

Project Risk

The potential for losses or less-than-expected outcomes in a specific project, due to factors such as cost overruns, underperformance, or delays.

Funding Sources

Various origins of capital used to start or expand a business, including debt financing, equity financing, and internal funds.

Cost of Capital

The cost of capital is the rate of return a company must earn on its investments to maintain its market value and attract funds, including the cost of equity and debt.