According to the Literal Approach to Statutory Interpretation,a Court Should

question 37

Essay

According to the literal approach to statutory interpretation,a court should interpret the wording of a statute literally.Explain why this is historically the preferred approach of the courts,and why it might,in some situations,lead to injustice or an otherwise inappropriate result.

---

Definitions:

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and earnings without having to increase leverage or equity financing.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that are financed by shareholders' equity.

Fixed Assets Investment

Expenditures related to acquiring or improving long-term assets such as property, plant, and equipment that will be used in business operations.

Debt-Equity Ratio

The ratio demonstrating the proportionate role of debt and equity in a company's asset financing scheme.