What Is One of the Most Dynamic Trends That Is

question 76

Multiple Choice

What is one of the most dynamic trends that is affecting current global business strategies?

• A) the trend toward buying American cars in Europe
• B) the trend toward the acceptance of the free market system among developing countries
• C) the trend toward using English as the global language
• D) the trend toward establishing a world currency
• E) the trend toward providing aid to developing and less developed nations

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Definitions:

M&M Proposition II

A theory proposing that the cost of equity for a leveraged firm increases linearly with its level of debt, holding the cost of debt constant.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements and is used in calculating the weighted average cost of capital.

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to gauge financial health and risk.

Required Rate of Return

The lowest yearly percentage gain from an investment required to attract individuals or businesses to invest in a specific security or venture.