According to Your Textbook, Two Key Components of Corporate Profitability

question 46

Multiple Choice

According to your textbook, two key components of corporate profitability are 1) industry structure and 2) ________________.

• A) Technological adaptability
• B) IT proficiency
• C) Competitive advantage
• D) Corporate management style

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Definitions:

Flotation Cost

The total costs associated with issuing new securities, including underwriting fees and other expenses.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically with dividends that are paid out before those of common stocks.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Dividend Growth

The rate at which a company's dividend payments increase over time.