If the Stock Market Increases in Value, All Else Constant

question 113

Multiple Choice

If the stock market increases in value, all else constant, then the WACC of most firms will tend to:

• A) Remain constant.
• B) Decrease.
• C) Increase.
• D) Change, but the direction of the change cannot be determined from the information given.

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Definitions:

Main Clauses

Sentences or parts of sentences that can stand alone as complete thoughts, containing both a subject and a predicate.

Compound Sentence

Sentence with two main clauses that express two or more independent but related thoughts of equal importance, usually joined by a conjunction such as and, but, or or.

Complex Sentence

A sentence that contains one independent clause and at least one dependent clause, adding depth to the written communication.

Dependent Clause

A group of words that contains a subject and a verb but does not express a complete thought and cannot stand alone as a sentence.