Why Is the Necessary and Proper Clause Often a Source

question 80

Multiple Choice

Why is the necessary and proper clause often a source of controversy and political disagreement?

• A) Some argue that it grants too much power to the Supreme Court by giving it the power to declare state laws unconstitutional.
• B) Some argue that the executive branch has abused its power through an overly broad interpretation of the necessary and proper clause.
• C) Some argue that the U.S. Congress has abused its power through an overly broad interpretation of the necessary and proper clause.
• D) Some argue that it makes the military too powerful without proper checks from civilian government.
• E) Some argue that it gives too much power to the state governments at the expense of the national government.

Recognize the difference between book value and market value of assets.

Identify the components of the cash flow from assets and how it reflects the firm's financial health.

Understand the factors affecting the firm's financial leverage and various methods of raising capital.

Understand the concepts of cash flows in a firm, including cash flow to stockholders and creditors.

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Definitions:

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating how quickly the dividend payments have grown over a specific period.

Expected ROE

The anticipated return on equity, calculated based on expected future earnings divided by shareholders' equity.

Expected ROE

The projected return on equity, which measures a company's efficiency at generating profits from every unit of shareholder's equity.

Dividend Growth Rate

The annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.