The Approach to Computing the Cost of Equity Financing That

question 349

Multiple Choice

The approach to computing the cost of equity financing that utilizes the Treasury bill rate is called the:

• A) Dividend growth model.
• B) Weighted average cost of capital.
• C) Security market line.
• D) After-tax cost of equity.
• E) Inflation adjusted cost of equity.

---

Definitions:

Organizational Buyers

Entities that purchase goods and services for use in the production of other products or services, for resale, or for organizational operation.

Buyer's Needs

The requirements or desires that consumers have when looking to purchase products or services.

Tying Agreements

Contractual agreements where the sale of one product is conditional on the purchase of another, often unrelated, product.

U.S. Justice Department

The federal executive department responsible for the enforcement of the law and administration of justice in the United States.