If Intelligence Is Determined Primarily by Heredity, Which Pair Should

question 150

Multiple Choice

If intelligence is determined primarily by heredity, which pair should show the highest correlation between IQ scores?

• A) fraternal twins
• B) identical twins
• C) brothers and sisters
• D) parents and children

Understand the relationship between the returns required by investors and the firm's cost of capital components.

Recognize the significance of market values in calculating the cost of capital over book values.

Know the concept of target capital structure and its relevance to the WACC.

Learn how the marginal cost of capital (MCC) and investment opportunity schedule (IOS) guide capital budgeting decisions.