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Critical Thinking Questions
Case 1-1
Your company recently upgraded to Microsoft Office 2013. Your supervisor has asked you to explain some of the new features in Microsoft Word. You start out with a blank Word document window.
What is the name of the flashing vertical bar that appears in the blank part of the window?
New Equity
Refers to the issuance of shares by a company to raise capital, which dilutes existing ownership but can provide funds for expansion or debt reduction.
Constant Growth
A steady and unchanging rate at which the value or size of something increases over a specific period.
Flotation Costs
The total costs incurred by a company in issuing new securities, including underwriting, legal, and registration fees.
Cost of Equity
The return a company theoretically pays to its equity investors as a reward for taking on the risk of investing in the company.
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