Planets with Circular Orbits Travel at the Same Speed at All

question 84

True/False

Planets with circular orbits travel at the same speed at all points in their orbits, whereas planets with elliptical orbits change their speeds at different points in their orbits.

---

Definitions:

Selling New Common Stock

The process whereby a company issues and sells additional shares of its common stock to investors to raise capital.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and it can also be viewed as the risk-free rate of return plus a risk premium.

Capital Budgeting Projects

Capital budgeting projects are long-term investment decisions made by companies to invest in assets and projects for future growth and profitability.

Corporate WACC

Weighted Average Cost of Capital for a corporation, which is the average rate of return it must earn on its investments to maintain the value of its stock and pay its debt.