The Return Demanded by Shareholders for the Risk That They

question 91

Multiple Choice

The return demanded by shareholders for the risk that they bear in supplying capital to the firm is

• A)less for riskier firms.
• B)only considered when a corporation has no debt.
• C)measured by the internal rate of return.
• D)called the cost of equity.

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Definitions:

Imperative

Describes something that is absolutely necessary or required, often used in the context of commands or duties.

Integration Imperative

The perceived need or policy goal of integrating diverse groups into a cohesive and functioning society, emphasizing unity and cooperation.

Social System

Refers to a complex set of human relationships interacting in many ways and at multiple levels, including institutions, organizations, and individuals.

Action System

An organizational concept in sociology and systems theory used to describe and analyze social behaviors and structures.