Suppose That Jupiter Had Never Existed, and There Was No

question 49

Multiple Choice

Suppose that Jupiter had never existed, and there was no planet in our solar system between Mars and Saturn. How would we expect this to have affected Earth?

• A) Earth would have been hit by many more comet impacts.
• B) Earth's orbit would have been unstable, and our planet would have spiraled into the Sun.
• C) There would not have been any effect, since Jupiter is in the outer solar system and Earth is in the inner solar system.
• D) There would be no water on Earth.

---

Definitions:

Firm's Stock

The capital raised by a corporation through the issuance and subscription of shares representing ownership interest in the company.

Dividend Cuts

A reduction in the dividend payments announced by a company, often due to financial difficulties or a need to retain more earnings for investments.

Target D/E Ratio

The desired debt-to-equity ratio that a company aims to achieve to optimize its capital structure.

Residual Dividend Policy

Residual Dividend Policy is a strategy where a company pays dividends out of the residual or leftover equity only after all project capital needs are met.