Evan Knows His GPA Would Skyrocket If He Could Break

question 57

Multiple Choice

Evan knows his GPA would skyrocket if he could break his horrible habit of procrastinating.An example of a commitment device Evan could use would be:

• A) to allow himself one hour of leisure for every half-hour of studying he does each day.
• B) to exercise before studying in order to be refreshed.
• C) to pay a student to meet him each afternoon for 2 hours in the library to ensure he studies every day.
• D) All of these are commitment devices.

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Definitions:

Financial Attribute

Characteristics or information pertaining to financial entities, transactions, or instruments that can be measured or identified, such as price, yield, risk, or returns.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Risk-Adjusted

A process or methodology that adjusts for the risk involved in a project or investment, allowing for more accurate comparisons or evaluations.

Equity Cost

The total expenses involved in acquiring equity financing, including direct costs like underwriting fees and indirect costs such as stock dilution.