The Median-Voter Theorem Explains Why

question 58

Multiple Choice

The median-voter theorem explains why

• A)politicians take extreme stands on issues.
• B)voters are attracted to political outsiders.
• C)two opposing politicians tend to take opposite sides of each issues.
• D)politicians tend to take middle-of-the-road positions.

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Definitions:

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and satisfy its creditors and shareholders.

Stock Price

The cost of purchasing a share of a company; it fluctuates based on supply and demand in the stock market.

Share Repurchases

Occurs when a firm repurchases its own shares.

EPS

Earnings Per Share (EPS) is a financial ratio calculated by dividing the company's net profit by the number of its outstanding shares, indicating how much money a company makes for each share of its stock.