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A Community Health Nurse Is Using the Omaha System

question 14

Multiple Choice

A community health nurse is using the Omaha System. Which of the following best describes the rationale for using this system?


Definitions:

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity that maximizes a company's stock price by balancing the costs and benefits of financing.

Weighted Average Cost of Capital

Weighted Average Cost of Capital (WACC) is a calculation of a company's cost of capital in which each category of capital is proportionately weighted.

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income, such as interest on debt.

Capital Structure

The mix of debt and equity financing a company uses to fund its operations and growth.

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