In His Study of Thinking, Duncker Found That the First

question 244

Multiple Choice

In his study of thinking, Duncker found that the first step in problem solving based on understanding is to discover

• A)a number of functional solutions.
• B)the set of rules that lead to the solution.
• C)the general properties of a correct solution.
• D)the implicit actions for solving the problem.

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Definitions:

Cost of Equity

The rate of return a company is expected to pay to its shareholders to compensate them for the risk of investing in the company.

Retained Earnings

Profits that a company has chosen to reinvest in the business rather than distribute to shareholders as dividends, accumulated over time.

Hurdle Rate

The project cost of capital, or discount rate. It is both the rate used in discounting future cash flows in the net present value method and the rate that is compared to the internal rate of return.

Intrinsic Value

The actual value of a company, asset, or currency determined through fundamental analysis without reference to its market value.