What Means "The Reason for the Decision

question 64

Multiple Choice

What means "the reason for the decision"?

• A) obiter dicta
• B) ratio decidendi
• C) stare decisis
• D) precedent

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the present value of expected cash flows minus the initial investment.

Outstanding Shares

Shares of a company that are owned by investors, including restricted shares held by the company’s insiders.

Value Per Share

A measure reflecting the equity value of a company divided by its total number of outstanding shares, indicating what each share is worth.

Equity-Financed

This term refers to the portion of a company's operations or assets that is funded by issuing equity (stocks) instead of taking on debt.