THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 115

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The amount of time you have to wait at a particular stoplight is uniformly distributed between zero and two minutes.
-Eighty percent of the time,the stoplight will change before you have to wait X seconds,what is the value of X?

• A)90 seconds
• B)24 seconds
• C)30 seconds
• D)96 seconds

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Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Target Capital Structure

The optimal mix of debt, equity, and other securities a company aims to hold, balancing risk and return to maximise shareholder value.

Flotation Costs

Financial outlays a business faces when it issues new stocks, covering charges for underwriting, legal services, and registration documentation.

Retained Earnings

The portion of a company's profits that is kept or retained within the company instead of being paid out to shareholders as dividends, often used for investment or to pay off debt.