Related to the Economics in Practice on Page 282

question 393

Multiple Choice

Related to the Economics in Practice on page 282. In the FTC case against Google which is discussed in the Economics in Practice, the charge against Google was that Google

• A) manipulated its search results to favor its own subsidiaries.
• B) illegally tried to acquire Microsoft's Bing search engine.
• C) attempted to take over Facebook and Twitter without FTC approval.
• D) colluded with Microsoft to prevent the Windows operating system from opening rival search engines.

---

Definitions:

Target Capital Structure

The mix of debt, equity, and other financing methods a company aims to use to fund its operations and growth.

Interest Rate

An interest rate is the percentage charged on the total amount you borrow or save. It's essentially the cost of borrowing money or the return on savings.

WACC

The calculation of a company's cost of capital, whereby each capital category is weighted according to its proportion, is referred to as the Weighted Average Cost of Capital.

Constant Dividend Growth Rate

The constant dividend growth rate is a model assuming that dividends from a stock or portfolio grow at a fixed, constant rate indefinitely.