One Cost That Is Irrelevant in Decision Making Is a Sunk

question 60

True/False

One cost that is irrelevant in decision making is a sunk cost.

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Definitions:

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Debt-to-equity Ratio

A financial ratio highlighting the use of debt versus equity in the capital structure supporting a company's assets.

Times Interest

A financial ratio indicating how many times a company can cover its interest payments with its earnings before interest and taxes.

Earnings Per Share

A financial metric that measures the profitability of a company by dividing its net income by the number of outstanding shares of its common stock.