By Sailing West, Columbus Hoped to Find

question 32

Multiple Choice

By sailing west, Columbus hoped to find

• A)Japan, gold, and potential Christians.
• B)the mythical continent of Atlantis.
• C)Atlantic islands suitable for Spanish colonization.
• D)new types of vegetables and fruits.
• E)proof of the accuracy of Classical Greek geographical information.

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Definitions:

Face Value

The nominal value printed on a bond or security which indicates its worth at maturity but does not necessarily reflect its market value.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its shareholders and debt holders, weighted according to the proportion of equity and debt in the company's capital structure.

Return on Equity

A financial ratio indicating the profitability of a company relative to its shareholders' equity, calculated as net income divided by shareholders' equity.

Weighted Average Cost of Capital (WACC)

A calculation of a firm's cost of capital in which each category of capital (debt, equity, etc.) is proportionately weighted, representing the average rate that a company is expected to pay for all its financing sources.