Clients Over Age 60 Who Smoke Are the Fastest Growing

question 43

Multiple Choice

Clients over age 60 who smoke are the fastest growing segment of the oral cancer population. Human papilloma virus 16 (HPV 16) is responsible for the increased risk for oral cancer especially in the tonsillar area.

• A)The first statement is TRUE; the second is FALSE
• B)The first statement is FALSE; the second is TRUE
• C)Both statements are TRUE
• D)Both statements are FALSE

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Definitions:

After-Tax Cost of Debt

The interest expense on debt adjusted for taxes, showing the actual cost of debt financing after considering the tax shield.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Component Cost of Debt

The effective rate that a company pays on its current debt, incorporating tax effects.

Preferred Shares

Preferred Shares are a type of stock that grant holders preferential treatment over common stockholders in terms of dividends and assets during liquidation, but usually do not carry voting rights.