A Static Decision Is One That

question 39

Multiple Choice

A static decision is one that

• A) is made very slowly.
• B) involves planning over one time period.
• C) involves planning over exactly two time periods.
• D) involves planning over more than one time period.
• E) involves only the present.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional stock.

Constant Growth

A model assuming that dividends or any other type of cash flow grow at a constant rate indefinitely.

Debt/Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Weighted Average Cost Of Capital

The average rate that a company is expected to pay to finance its assets, weighted according to the proportion of equity and debt in its capital structure.