For Global Companies That Take More of a "Shareholder" Approach

question 37

True/False

For global companies that take more of a "shareholder" approach to strategy formation,corporate social responsibility (CSR)ir probably the most important output control of all.

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Definitions:

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its shareholders and debt holders, weighted according to the proportion of equity and debt in the company's capital structure.

Return on Equity

A financial ratio indicating the profitability of a company relative to its shareholders' equity, calculated as net income divided by shareholders' equity.

Weighted Average Cost of Capital (WACC)

A calculation of a firm's cost of capital in which each category of capital (debt, equity, etc.) is proportionately weighted, representing the average rate that a company is expected to pay for all its financing sources.

Market Price

The immediate valuation at which one can transact assets or services in the market sector.