Once Established,competitive Advantages Last Forever Whether the Firm Is in a High

question 93

True/False

Once established,competitive advantages last forever whether the firm is in a high technology environment or not.

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Definitions:

Computed NPV

The calculated Net Present Value based on a specific discount rate and series of cash flows.

Perpetual Cash Flows

Cash flows that are expected to continue indefinitely without an end.

D/E Ratio

Debt-to-Equity Ratio, a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Equity Costs

The cost of obtaining capital through the sale of shares in the company, including dividends payouts and the dilution of share value.