Strategic Decisions Are Different from Other Types of Decisions Because

question 18

True/False

Strategic decisions are different from other types of decisions because they are easily made using past history and experience; strategic decisions become routinized over a period of time.

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Definitions:

Pretax Cost

This refers to an expense or cost incurred by a business before accounting for taxes.

WACC

The Weighted Average Cost of Capital represents a method for determining a company's capital cost, with each type of capital being weighted according to its proportion.

Cost of Retained Earnings

The opportunity cost to shareholders for having a company retain earnings instead of paying them out as dividends.

Flotation Costs

Expenses incurred by a company in issuing new securities, including legal, administrative, and underwriting fees.