INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 77

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-Your [gross | probate] estate consists of your real and personal property that will be transferred at death.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Risk Premium

The additional return that an investor expects to receive for taking on a higher level of risk compared to a risk-free investment.

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate that a company is expected to pay on its securities, taking into account debt and equity.

Target Capital Structure

The mix of debt, equity, and other securities that a company aims to hold in order to finance its assets and operations ideally.

Flotation Costs

Expenses associated with issuing new securities, including legal, underwriting, and registration fees.