Strictly Speaking,a Contract Has Nothing to Do with the Personal

question 15

True/False

Strictly speaking,a contract has nothing to do with the personal intent of the parties.

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Definitions:

Share Price

The price of a single share of a company's stock.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.

Optimal Capital Structure

The ideal mix of debt and equity financing that minimizes a company's cost of capital and maximizes its value and stock price.

WACC

Weighted Average Cost of Capital, a calculation of a firm's cost of capital that weighs each category of capital proportionately.