Someone Who Keeps an Open Mind to All Claims, and Then

question 43

Multiple Choice

Someone who keeps an open mind to all claims, and then accepts claims that have undergone careful scientific testing is a

• A) skeptic.
• B) cynic.
• C) rationalist.
• D) empiricist.

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Definitions:

WACC

Weighted Average Cost of Capital, a measure used to estimate the average rate of return a company is expected to pay its securities holders.

Cost of Common Stock

The return required by equity investors given the risk of the investment in a company's common stock, often used as a component in calculating the cost of capital.

Marginal Shareholder

An investor perceived to be influential in determining a stock's price by their decisions to buy or sell at the margin.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a dividend based on the company’s profitability.