Consider the Following Formula: Rwacc = RE

question 72

Multiple Choice

Consider the following formula: rwacc = rE + rD - rDτc
The term rDτc represents:

• A)the reduction due to the interest tax shield.
• B)the present value of the interest tax shield.
• C)the present value of the future interest payments.
• D)the interest tax shield each year.

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Definitions:

Random Ratio

A reinforcement schedule in operant conditioning where a response is reinforced after an unpredictable number of responses.

Negative Reinforcement

A behavioral psychology concept involving the removal of an unpleasant stimulus to increase the likelihood of a desired response.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Fixed Ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses.