A Function or Rule That Assigns a Numerical Value to Each

question 54

Multiple Choice

A function or rule that assigns a numerical value to each outcome of an experiment is called:

• A)a sample space.
• B)a probability distribution.
• C)a random variable.
• D)None of these choices.

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Definitions:

Target Capital Structure

The optimal mix of debt, equity, and other financing sources a firm aims to achieve to minimize its cost of capital.

Dividend Payout Ratio

A financial ratio indicating the percentage of a company's earnings paid to shareholders in dividends.

Capital Budgeting

The process businesses use to evaluate and select major capital investments, based on their potential to generate additional profits or cash flow.

Clientele Effect

The theory suggesting that the types of dividends a company pays can attract different types of investors.