Why Is It Important for fiNancial Decision Makers to Obtain

question 166

Essay

Why is it important for financial decision makers to obtain a good estimate of the firm's cost of
capital?

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Definitions:

Three Terms

In logic, particularly syllogistic reasoning, the use of three different terms to construct a conclusion derived from two premises.

Categorical Syllogism

A form of deductive reasoning consisting of three parts: two premises and a conclusion, where all statements are categorical propositions.

Conclusion

The end or finish of an event, process, or text; in logic, it is the statement that necessarily follows from the premises of an argument.

Categorical Syllogism

A form of deductive reasoning consisting of three propositions: a major premise, a minor premise, and a conclusion, each of which states a relationship between categories.