What Does R Stand for in the Following Equation $F = \frac { G m _ { 1 } m _ { 2 } } { r ^ { 2 } }$

question 1

Multiple Choice

What does r stand for in the following equation? $F = \frac { G m _ { 1 } m _ { 2 } } { r ^ { 2 } }$

• A) Radius of the earth
• B) Universal gravitational constant
• C) Resistance
• D) Center-to-center distance between objects

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Definitions:

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity financing that maximizes a company's stock price while minimizing its cost of capital.

Earnings Per Share

A financial ratio indicating the amount of profit attributed to each outstanding share of common stock.

Cost of Equity

The return that investors expect for investing in a company's equity, usually considered in the form of dividends and share price appreciation.

Cost of Debt

The effective rate that a company pays on its total debt, factoring in interest payments, fees, and other costs associated with borrowing.