Application Service Providers Have Met with a Great Deal of Success

question 52

True/False

Application service providers have met with a great deal of success in recent years as more and more firms have decided to rent software rather than buy it.

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Definitions:

Debt Rating

An assessment of the creditworthiness of a debtor, usually in the form of a code or letter grade, provided by credit rating agencies.

Cost of Capital

The return rate that a company must earn on its investment projects to maintain its market value and satisfy its creditors and investors.

Market Value

The current value at which the market facilitates the sale or purchase of a service or asset.

WACC

Weighted Average Cost of Capital; a calculation used to assess the cost of a company's financing by averaging the costs of its equity and debt, weighted by their respective proportions in the company's capital structure.