Examlex

Solved

What Is the Difference Between the Short Run and the Long

question 252

Essay

What is the difference between the short run and the long run? What is the appropriate time dimension of the long run?


Definitions:

Financial Leverage

A difference between the rate of return on assets and the rate paid to creditors.

Price-Earnings Ratio

A valuation metric that shows the relationship between a company's stock price and its earnings per share.

Dividends

Payments made to shareholders out of a company's profits, often on a regular basis.

Preferred Shares

A class of ownership in a corporation that has a higher claim on assets and earnings than common shares, usually with fixed dividends.

Related Questions