The Mode of Transportation Which Has the Highest Fixed Cost

question 38

Multiple Choice

The mode of transportation which has the highest fixed cost is

• A)trucks.
• B)rail.
• C)air.
• D)maritime shipping.

---

Definitions:

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often based on the risk of investing in that company's equity.

Dividend Growth Model

A valuation method that estimates the price of a company's stock based on the dividend growth rate and the expected dividend payments.

Estimated Dividend Growth Rate

The projected annual rate at which dividends paid by a company or fund are expected to grow.