The Phenomenon That Describes Corporations as Evolving Through Relatively Long

question 82

Multiple Choice

The phenomenon that describes corporations as evolving through relatively long periods of stability punctuated by relatively short bursts of fundamental change is known as

• A) revolution.
• B) equilibrium.
• C) punctuated equilibrium.
• D) logical incrementalism.
• E) discontinuity.

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Definitions:

WACC

Weighted Average Cost of Capital, a calculation of a firm’s cost of capital in which each category of capital is proportionately weighted.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity, indicating the proportion of debt used in financing its assets.

After-Tax Cost of Debt

The net cost to a company for borrowing funds, calculated by subtracting the tax benefits of interest expenses from the total interest paid.

Cost of Equity

The Cost of Equity is the return a company requires to decide if an investment meets capital return requirements and is often used in financial analysis and valuing companies.