Under the Rule, a Defendant Is Liable for All the Consequences

question 27

Short Answer

Under the rule, a defendant is liable for all the consequences of his or her negligent acts no matter how unforeseeable those consequences may be.

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Definitions:

Weighted Average Cost of Capital (WACC)

A calculation of a company's cost of capital, weighted by the proportion of each source of capital (debt and equity), used to see how much interest the company pays for every dollar it finances.

Cost of Preferred Stock

The dividend required to be paid by an entity for the funds received from issuing preferred shares, typically expressed as a percentage.